Funding a Shopify Business: Capital, Loans or Investors
Funding a Shopify business usually means one of five things: Shopify Capital, revenue-based financing from another lender, a bank loan, a business credit card, or equity from investors. The biggest difference between them is repayment. Capital and revenue-based financing take a share of daily sales, a bank loan or card takes a fixed monthly payment, and investors take a share of the company. Match the repayment to what the money is for, and borrow for things that pay themselves back, such as stock you already know sells. This article explains the options; it is not financial advice.
Options compared
| Option | How you repay | Good for | Watch out for |
|---|---|---|---|
| Shopify Capital | A percentage of your store’s daily sales, through the admin | Stock and campaigns for a store with steady sales | Invitation only; the cost is set in each offer |
| Revenue-based financing from other lenders | A percentage of revenue until a fixed total is repaid | The same jobs, if Capital has not invited you | Compare the total repayment, not the “rate” |
| Bank loan or credit line | Fixed monthly payments with interest | Planned, larger investments | Paperwork, collateral or a personal guarantee |
| Business credit card | Monthly balance, high interest if not cleared | Short gaps, paid off within the month | Expensive as long-term funding |
| Equity (angels, venture capital) | A share of the company, no repayment | Businesses aiming for very fast growth | You give up ownership and some control |
Revenue-based offers often state a fixed fee or a total repayment amount rather than an annual interest rate, which makes them hard to compare with a loan. Put every offer into the same two numbers: the total you will pay back, and how long that will probably take at your current sales. A $20,000 advance repaid with $23,000 over six months costs far more per year than the same fee spread over 18 months.
Shopify Capital
Shopify’s Capital page, read on October 31, 2026, describes it as funding you “repay as you sell”, with repayment taken as a percentage of your store’s daily sales. Points from the same page:
- Invitation only. Shopify emails you if you are eligible; you cannot simply apply.
- Where and who. Select merchants in the US, Canada, the UK and Australia who have sold on Shopify for at least 90 days.
- Amounts and speed. Funding up to $2 million, with offers in the merchant’s local currency, and funds in as little as two business days if approved.
- Repayment. You pay only on days with sales, so payments fall when sales fall. The maximum repayment term is 18 months, and two minimum payments apply.
- Lender. Loans through Shopify Capital are issued by WebBank.
The page states no fee or rate in general; the cost is in your individual offer, so read the total repayment before you accept. One consequence for later: Shopify’s Help Center says a store with Shopify Capital or Shopify Credit cannot be transferred to a new owner, which matters if you plan to sell your Shopify store while the advance is open.
When equity or VC makes sense
Venture investors back a small number of businesses they think can grow very large very fast. A store that grows steadily and pays its owner a good income is usually not the kind of company a venture fund invests in, so for a store like that the other four options are the realistic ones.
If you do talk to investors, they will look at numbers you can pull from Shopify: revenue growth by month, gross margin, the repeat purchase rate and how cohorts behave over time, customer acquisition cost against the profit per customer, and how much of the traffic you own (email, organic search) versus rent (ads). The repeat side is covered in repeat purchase metrics, and fixing the operations before you spend new money in scale a Shopify store.
The order we would suggest to a growing store is to fund stock from cash flow, use revenue-based financing or Capital for a known seasonal peak, take a bank line once the business has a few years of accounts, and consider equity only for a plan that cash flow and debt cannot fund. More operations guides are in the running a store hub.
Frequently asked questions
How do I get Shopify Capital? Shopify Capital is by invitation: Shopify emails eligible merchants, who are selected from stores in the US, Canada, the UK and Australia that have sold on Shopify for at least 90 days. If you are eligible, the offer appears in your admin.
Is revenue-based financing expensive? It can be, depending on how fast you repay. A fixed fee repaid over a few months works out to a high annual cost, while the same fee over 18 months is cheaper per year, so compare offers by total repayment and expected payback time.
Do VCs invest in Shopify stores? Venture investors back some ecommerce brands, mostly ones aiming for very fast growth and a large market. A profitable store with steady growth is usually better served by revenue-based financing, a bank line or its own cash flow.