Shopify Capital is financing for merchants who sell on Shopify. In the US it offers loans of up to $2 million, issued by WebBank, repaid automatically from a fixed percentage of your store’s daily sales, with an 18-month maximum term. Shopify says there are no credit checks and no personal guarantee. It suits established Shopify stores with steady sales that want funding without a separate application process; stores that need a long-term loan, or that sell mostly outside Shopify, may find other options fit better.
This review is part of the SMB Compass lender reviews series and focuses on the trade-offs: pros, cons and who Shopify Capital suits. For a step-by-step explanation of the product, see our guide to Shopify business loans; for other lenders to compare, see Shopify Capital alternatives. SMB Compass is a financing broker, not a lender: we help owners compare offers from a panel of lending partners. Figures come from Shopify’s own website and Help Center, checked on September 21, 2026.
Shopify Capital at a glance
| Feature | What Shopify says (US) |
|---|---|
| Lender | WebBank issues all Shopify Capital funding in the US |
| Amount | Up to $2 million |
| Pricing (as Shopify quotes it) | Either a fixed fee (a percentage of the loan) or a fixed monthly fee in dollars; set when you apply |
| Repayment | A fixed percentage of daily sales, taken only on days you make sales |
| Maximum term | 18 months |
| Minimum repayment | 30% of the total by month 6 and 60% by month 12 |
| Credit check and guarantee | “No credit checks,” “no guarantors” |
| Eligibility | Active Shopify plan and at least three months operating or since first sale; US business; Shopify Payments or an approved third-party provider |
| Speed | “As quick as two business days, if approved” |
| Prepayment | Allowed; on the fixed-fee structure, the cost stays the same |
How Shopify Capital works, in brief
You don’t fill out a traditional loan application. “Eligible merchants in the United States can request a loan and access funding options on the Finance page of the Shopify admin,” according to the Shopify Help Center. Shopify bases offers on your store’s history and sales, and “receiving an offer doesn’t guarantee funding. You must submit an application to proceed.”
Once funded, repayment happens automatically from a fixed percentage of daily sales, and “no payment is taken on days when there are no sales.” The whole amount must be repaid within 18 months, with minimums of 30% by the 6-month mark and 60% by the 12-month mark. Shopify says missing those thresholds “might result in an event of default under your loan agreement.”
What it costs
Shopify Capital does not charge interest in the usual sense. It uses one of two fee structures, and you see the cost before you accept:
| Structure | How the fee works | Shopify’s example | Effect of paying early |
|---|---|---|---|
| Fixed fee | A single fee set as a percentage of the loan amount (a factor rate) | $100,000 at 13% costs $13,000 | “The cost of funds remains the same” |
| Monthly fee | A fixed dollar fee each month the loan is outstanding | $100,000 with a $1,400 monthly fee | Fewer months outstanding means fewer fees |
A factor rate is a multiplier on the amount you receive: Shopify’s glossary defines it as “the number that the amount received multiplies by to determine the total to remit.” It is not an APR (annual percentage rate). Because Shopify Capital lasts 18 months or less, and strong sales repay it faster, a fixed fee can equal a much higher APR than the fee percentage suggests. Shopify’s figures above are examples, not quotes, and Shopify does not publish a fee range on the pages we checked, so compare the actual offer in your admin. Our explainer on factor rates vs APR shows how to convert.
Who qualifies
Shopify’s eligibility page lists these requirements:
- “Your store must be actively subscribed to a Shopify plan and operational for at least three months or have had its first sale more than three months ago.”
- You use Shopify Payments or an approved third-party payment provider.
- The account representative on your Shopify Payments account lives in the same country as the business.
- “Business entities operating as trusts and partnerships aren’t supported at this time.”
Shopify also weighs factors such as store tenure, sales performance, payment history, chargebacks and disputes, compliance with its terms of service, and whether the store sells prohibited products. There is no published minimum credit score, because Shopify says it runs no credit checks.
Pros and cons
Pros:
- No credit checks, no personal guarantee and “no personal liability,” according to Shopify
- Minimal paperwork: offers are based on your Shopify store data
- Payments flex with sales, and nothing is taken on days with no sales
- Large amounts for high-volume stores, up to $2 million
- Total cost known up front on the fixed-fee structure, with no compounding
- Funding in as little as two business days, and a second loan may be available before the first is repaid
Cons:
- Only for Shopify merchants, and only when Shopify makes an offer
- Pricing is shown as a fee or factor rate, not an APR, so comparing takes a calculation
- On the fixed-fee structure, paying early does not lower the cost
- Short 18-month maximum, with 30% and 60% minimums that can be hard to meet in a slow season
- Trusts and partnerships are not supported
Who Shopify Capital suits, and who should look elsewhere
Shopify Capital suits stores that have sold on Shopify for a while, have steady or growing sales, and need funds for inventory, ads or a seasonal buildup that the sales will repay within a year or so. It is especially useful for owners who want funding without a credit check or a personal guarantee.
Look elsewhere if:
- You have not received an offer, or most of your sales happen off Shopify. Our Shopify Capital alternatives page compares lenders that take direct applications.
- You want a revolving line you can draw on repeatedly. See our business line of credit page and Fundbox review.
- You sell in person as well as online. Compare Square Loans vs Shopify Capital and our Square Loans review.
- You prefer revenue-based financing from a specialist e-commerce funder. See e-commerce revenue-based financing.
Pitfalls to watch
- Accepting the largest amount offered. A bigger loan means a bigger fee and a bigger share of daily sales going to repayment.
- Ignoring the 6- and 12-month minimums. Plan for your slow months before you accept.
- Expecting early payoff to save money on a fixed fee. It won’t; on the monthly-fee structure, it does.
- Comparing a fee percentage with an annual rate. Convert to APR or compare total dollars repaid.
Frequently asked questions
Is Shopify Capital a loan or a cash advance?
In the US, Shopify describes Shopify Capital as loans, and “all loans through Shopify Capital are issued by WebBank in the United States.”
Does Shopify Capital check your credit?
Shopify says there are “no credit checks, no impact to your personal credit score” and no guarantors.
How long do you have to repay Shopify Capital?
Up to 18 months, with at least 30% repaid by month 6 and 60% by month 12.
How do I get a Shopify Capital offer?
Eligible US merchants see funding options on the Finance page of the Shopify admin. Your store needs an active plan and at least three months of operation or sales.
Next step
If you have a Shopify Capital offer, set it next to at least one outside offer on total cost and the share of daily sales it takes. Our e-commerce loans page explains how SMB Compass can help you compare offers from our lending partners, and the lender reviews hub covers other lenders.
Sources
- Shopify, Shopify Capital: shopify.com/capital
- Shopify Help Center, Shopify Capital in the United States: help.shopify.com
- Shopify Help Center, Shopify Capital eligibility: help.shopify.com
- Shopify Help Center, Shopify Capital glossary: help.shopify.com
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against each lender’s own website 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.