Shopify business loans usually means Shopify Capital, the financing Shopify offers to eligible merchants from inside the Shopify admin. In the US, those loans are issued by WebBank, go up to $2 million, cost a flat fee (one-time or monthly) rather than interest, and are repaid automatically from a percentage of your daily sales. Shopify Capital is not your only option, though. Outside lenders, PayPal, SBA lenders and revenue-based financing companies also fund Shopify stores, and our e-commerce loans hub covers the full range.
This page explains how Shopify Capital works in Shopify’s own words, what it costs, and how it compares with financing from outside the platform.
How Shopify Capital works
Shopify describes the product this way on its US help page: “Shopify Capital offers loans to merchants in the United States. Loans are provided as a lump sum of money called the loan amount, in exchange for a fixed borrowing cost.” It adds that “all funding through Shopify Capital in the United States is issued by WebBank” (Shopify Help Center).
The key features, as Shopify states them:
- Amount: “Access up to $2M in funding” (Shopify Capital).
- Speed: funding “in as quick as two business days” once your application goes through.
- Repayment: “You’ll automatically repay with a fixed percentage of your store’s daily sales, but only on days you make sales.”
- Term: “The maximum term for new Shopify Capital loans is 18 months, within which the total payment amount must be fully received.”
- Minimum payments: “The minimum repayments are 30% of the total loan by the 6-month mark and 60% of the total payment amount by the 12-month mark.” Missing them “might result in an event of default under your loan agreement.”
- Credit checks: Shopify advertises “minimal paperwork, no credit checks, and no guarantors.”
Who is eligible
Shopify Capital is offered by invitation, based on your store’s data. According to Shopify, your store “must be actively subscribed to a Shopify plan and operational for at least three months,” and you must use Shopify Payments or a supported third-party payment provider. Shopify says “eligibility for funding and the size of the offer you receive are primarily based on your sales performance” (Shopify eligibility), and that it uses machine learning to analyze data such as sales, disputes and customer engagement. If you do not see an offer in your admin, you cannot apply.
What Shopify Capital costs
Shopify offers two fee structures in the US:
- Monthly fee: a fixed dollar amount each month while a balance is outstanding. In Shopify’s own example, a $100,000 loan with a $1,400 monthly fee would cost $4,200 if repaid in 3 months or $15,400 if repaid in 11 months.
- Fixed fee: a single fee set as a percentage of the loan. In Shopify’s example, a $100,000 loan with a 13% fixed fee costs $13,000 whether it is repaid in 3 months or 11 months.
These are Shopify’s illustrations, not typical prices. Your offer will show the actual fee.
The structure matters. With the fixed fee, paying faster does not save money: Shopify says that “even if you pay off your entire balance, the cost of funds remains the same.” Because the fee is fixed while the repayment period depends on your sales, the faster your sales repay the loan, the higher the effective annual cost. A fixed fee repaid in a few months can work out far more expensive, in APR terms, than the same fee spread over a year and a half. With the monthly fee, faster repayment does reduce the total cost.
To compare an offer with a loan quoted as an APR, work out how long you expect repayment to take at your current sales, then calculate the annualized cost. Our explainer on factor rates vs. APR walks through the math.
Shopify Capital vs. outside financing
The table compares Shopify Capital with common alternatives, using what each provider or program publishes. Checked September 21, 2026.
| Option | Amount | Pricing as published | Repayment | Eligibility published | Lender of record |
|---|---|---|---|---|---|
| Shopify Capital | Up to $2M | Fixed fee or monthly fee (no interest rate quoted) | Fixed % of daily Shopify sales; 18-month maximum; 30% by 6 months, 60% by 12 months | Invitation only; Shopify plan and 3+ months operating; no credit check | WebBank |
| PayPal Working Capital | $1,000 to $250,000 ($400,000 for repeat borrowers) | “One competitively priced fixed fee”; “no periodic interest” | % of PayPal sales; minimum 5% or 10% of the total every 90 days | PayPal Business or Premier account 90+ days; $15,000 (Business) or $20,000 (Premier) annual PayPal sales; no personal credit check | WebBank |
| SBA 7(a) loan | Up to $5 million | Interest rate capped by SBA; set by lender | Fixed monthly payments, up to 10 years for working capital | SBA eligibility plus lender credit standards | SBA-participating lender |
| Revenue-based financing | Varies | Varies by provider | % of revenue | Based on revenue history | Varies |
| Business line of credit | Varies | Interest on amounts drawn | Draw and repay | Credit, time in business, revenue | Varies |
Sources: Shopify Capital, Shopify Help Center, PayPal Working Capital, SBA 7(a), SBA 7(a) terms.
PayPal Working Capital
If your Shopify store also takes PayPal, PayPal Working Capital works in a similar way. PayPal says you can borrow “from $1,000 up to $250,000, and up to $400,000 for repeat borrowers,” pay “one competitively priced fixed fee,” and repay “as a percentage of your PayPal sales; minimum repayment every 90 days.” It requires a PayPal business or Premier account for at least 90 days and at least $15,000 (Business) or $20,000 (Premier) in annual PayPal sales, with “no personal credit check.” PayPal’s lender is also WebBank (PayPal).
Revenue-based financing
Revenue-based financing (RBF) companies fund e-commerce brands against their sales history, and many connect to your store and bank data to size an offer. Like Shopify Capital, repayment rises and falls with revenue. Unlike Shopify Capital, you can shop several providers at once. See how revenue-based financing works for SaaS and e-commerce and what revenue-based financing is and when to use it.
Bank, SBA and online lenders
A term loan, SBA loan or business line of credit priced as an APR can cost less than a fixed-fee product if your store has a solid credit profile, a few years of tax returns and steady profits. The trade-off is more paperwork and a credit check. SBA 7(a) loans go up to $5 million and run up to 10 years for working capital (SBA).
Inventory financing
If the money is for stock ahead of a peak season, inventory financing or purchase order financing ties the funding to the goods themselves.
When Shopify Capital makes sense, and when it doesn’t
It can be a good fit when:
- You need money quickly and have an offer waiting in your admin.
- Your credit history is thin or damaged, and you would not qualify for bank credit.
- Your sales are seasonal, and you want payments to shrink in slow weeks.
- You have a specific, fast-payback use, such as a proven ad campaign or a reorder of a best-selling product.
Look elsewhere when:
- You expect to repay quickly on a fixed-fee offer, which drives up the effective annual cost.
- You need more than your offer or longer than 18 months to repay.
- Your margins are thin. A fixed share of every day’s sales can squeeze cash for inventory and ads.
- You qualify for an APR-priced loan or line of credit that costs less over the same period.
Pitfalls to avoid
- Comparing the fee with an interest rate. A 13% fixed fee is not a 13% APR. Convert to an annualized cost based on how quickly you expect to repay.
- Missing the minimum payments. If sales slow, you still need 30% repaid by month 6 and 60% by month 12. Plan for a slow season before you accept.
- Stacking. Shopify says you “might qualify for a second loan before you have repaid an existing loan in full.” Taking on a second advance before the first is gone can leave too much of your daily sales committed to repayments.
- Borrowing for slow-payback uses. Long-term projects, such as a warehouse build-out, fit poorly with a product that takes a share of daily sales.
- Assuming no credit check means no consequences. Shopify says missing the minimums “might result in an event of default under your loan agreement,” with the consequences the agreement sets out.
FAQ
Does Shopify Capital check my credit?
Shopify says it uses “no credit checks” and “no guarantors.” Eligibility is based on your store’s sales and other Shopify data.
How do I get a Shopify Capital offer?
Offers appear in your Shopify admin if you are eligible. Shopify requires an active plan, at least three months of operation and Shopify Payments or a supported third-party payment provider. You cannot request an offer if one has not been made.
Is Shopify Capital a loan or a merchant cash advance?
In the US, Shopify describes Shopify Capital as loans issued by WebBank. In some other countries, Shopify offers merchant cash advances instead.
Can I pay off Shopify Capital early?
Yes. Shopify lets you make manual payments toward the balance. On a fixed-fee loan, the cost stays the same even if you repay early.
What if I don’t qualify for Shopify Capital?
Look at PayPal Working Capital if you process PayPal sales, revenue-based financing providers that connect to Shopify, and, if your store has a few years of history, bank or SBA loans and lines of credit.
Next step
Before accepting any offer, write down how much you need, what it will pay for and how fast that spending should pay back. Our e-commerce loans page explains how we compare revenue-based financing, lines of credit and term loans from the lenders we work with, so you can put a Shopify Capital offer next to outside options on a like-for-like cost basis.
Sources
- Shopify: Shopify Capital
- Shopify Help Center: Shopify Capital loans and repayment in the United States
- Shopify Help Center: Shopify Capital eligibility
- Shopify: Finance
- PayPal: Working Capital loan
- U.S. Small Business Administration: 7(a) loans
- U.S. Small Business Administration: 7(a) terms, conditions and eligibility
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against the primary sources listed above on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.