Provider of internet infrastructure for commerce, Shopify has launched Shopify Capital to provide quick and easy funding to merchants to assist growth, expansion into new markets and preparing for the peak sales season.

While 62% of Australian merchants are comfortable seeking funds to invest in their business, two-thirds (67%) are deterred by high interest rates and more than half (53%) are turned off by lengthy application processes and timeframes. 

With funding of up to $2.5 million available to merchants, Shopify Capital does not do personal credit checks, take equity in the business or ask for cash flow projections, and there is no lengthy application process.

Shopify managing director for Asia Pacific, Shaun Broughton said, “We couldn’t be more proud to support Australian businesses with everything they need to build strong brands for customers here and around the world.

“At the same time, Australian businesses are concerned about the increasing cost of capital, inflationary pressures impacting margins, and declining consumer confidence impacting sales. Shopify Capital is remitted only when a sale is made, so Australian merchants can be confident that they can afford to invest in their businesses.”

Shopify merchants receive offers up to $2.5 million through the same Shopify platform they already use to run their store. Shopify Capital experts review the data-informed and machine learning models to ensure merchants receive the funding they need to help grow their business. Once approved, funds are deposited in as little as two business days for merchants to use how they choose for their business.

Funding through Shopify Capital is repaid through future sales, where remittance is success-based, rather than time-based. As merchants make sales, they repay based on an agreed fixed percentage of daily sales, removing the uncertainty of compounding interest rates and hidden fees.  

Since launching in 2016, Shopify Capital has provided more than US$3.8 billion in funding to tens of thousands of entrepreneurs in the US, UK and Canada.