A Shopify Capital loan is a lump sum (called the loan amount) that you receive from Shopify Capital in return for a fixed borrowing cost. The loan amount plus the fixed borrowing cost is called the total owed. The loan amount is deposited into your business bank account, and then a percentage of your daily sales is repaid to Shopify Capital until the total owed is repaid at the end of the 12-month term.
The loan’s 12-month term is divided into six 60-day repayment cycles called milestones. Each milestone has a minimum payback amount that must be met by the end of its 60-day cycle. If you don’t meet a milestone minimum payback amount, then the difference between the amount you’ve paid and the milestone minimum payback amount will be debited from your account.
For example, Shopify Capital might loan you $5,000 with a borrowing cost of $650, and a repayment rate of 10%. The $5,000 amount received would be delivered to your business bank account, and Shopify Capital would receive 10% of your daily sales revenue until the $5,650 total owed is repaid at the end of the 12-month term. Each of the loan’s six 60-day milestones would have a minimum payback amount of $941 (1/6 of the total owed). If you reached the first 60-day milestone and repaid only $800 through your daily repayments 
, then the remaining $141 would be debited from your account.
Shopify Capital is offering loan amounts between $200 and $2,000,000. The total owed and daily repayment rate depend on your risk profile.
Steps:
On the Capital page, you’ll see three funding options. Compare the terms of the funding options, and click Request beneath the one that you want.
The terms of each option will include the amount received, the total owed, and the daily repayment rate that will be deducted from your daily sales and repaid to Shopify Capital.
In the Review and accept terms dialog, carefully review the Terms and conditions section, and then click Shopify Capital Agreement to open it in another browser tab.
Carefully review the terms of the Shopify Capital Agreement. If you agree with the terms, then go back to the Review and accept terms dialog, and click Accept terms.
Your request will be reviewed by Shopify Capital, and you’ll hear whether you’ve been approved within 2-5 business days. If you’re approved, then your loan will be delivered to your business bank account.
If you switch your payment provider to Shopify Payments when you request funding, then it might take longer than five business days to approve your request.
Two days after you’ve received the loan, Shopify Capital will begin debiting the daily repayment from your business bank account based on your sales revenue each day.
Keep track of your loan repayments
After receiving your loan, you can track the remaining balance of your total owed from the Capital page of your Shopify admin under Shopify Capital.
- The remaining balance of the total owed.
- The amount of the total owed that has been repaid.
- The transfer history of repayments.
In the transfer history section of the report, the Total sales column shows each day’s sales revenue, and the Amount column shows how much of that revenue is repaid to Shopify Capital.
Repay the remaining balance
You can repay any amount over $20 against your loan, or the full remaining balance in one lump sum. The payment is debited from the same business bank account that’s associated with your Shopify account.
Steps:
- From your Shopify admin, go to Settings >Capital.
- Choose the amount that you want to pay:
- To pay a lump sum, enter the amount in the Custom amount field.
- To pay the full amount, click Full remaining balance.
- Click Next step and review the amount to be repaid.
What’s included in the repayment?
To calculate the amount that will be repaid to Shopify Capital each day, the daily repayment rate is applied to your store’s daily sales revenue.
For the purpose of calculating repayment, your store’s daily sales revenue includes every order that was marked as paid that day, regardless of the source of the order, how payment was processed, or whether the order was later refunded or canceled.
Test orders
When calculating repayment, the only orders that are not included in your store’s daily sales revenue are test orders that were placed when Shopify Payments was in test mode. If test mode was not enabled when an order was placed, then the order is included in your store’s sales revenue when the day’s repayment is calculated.
What if I haven’t paid back the milestone minimum payback amount after 60 days?
If you don’t meet the milestone minimum payback amount by the end of the 60-day period, then the difference between the amount that you’ve paid and the milestone minimum pay back amount will be debited from your account.
Can I payback my loan quicker than the 12-month term?
The repayment amount is based on a percentage of your daily sales. If you have a strong year in sales, then you can repay your loan before the 12-month term. There is no penalty for repaying your loan before the end of the 12-month term.
The borrowing cost of the loan is a fixed percentage of the loan amount you receive. The borrowing cost of a loan is calculated on an offer-by-offer basis.