Shopify Inc., a provider of essential internet infrastructure for commerce, has today launched the rollout of Shopify Capital in Australia to provide quick and easy funding up to $2.5 million AUD to help merchants accelerate growth, expand to new markets, and prepare for the peak sales season.
This is the time of year when Aussie merchants are preparing their business for the upcoming peak sales season — ordering inventory, planning campaigns, sorting shipping and hiring talent.
Though, timely access to funding to make these investments is one of the biggest challenges for entrepreneurs.
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.
Traditional lenders often require business owners to apply through lengthy and complex processes. Shopify Capital isn’t traditional financing. There’s no lengthy application process and Shopify does not do personal credit checks, take equity in the business or ask merchants for cash flow projections.
“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,” said Shaun Broughton, APAC Managing Director, Shopify.
“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 AUD through the same Shopify platform they already use to run their store. Shopify Capital has experts that 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, with most investing in talent, inventory and marketing to maximise growth or bridge cash flow during seasonal dips.
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, so payments flex with their business — lowering cash flow risks by removing the uncertainty of compounding interest rates and hidden fees.
Tracey Jewel, Manager at Batherapy, is a clear example of growth achieved through Shopify Capital. Boosted by two rounds of funding through Shopify Capital, Tracey expanded her business from selling online-only DIY bath kits to creating in-studio bath and body product workshops across Perth.
“Access to funding has traditionally required business owners to jump through hoops for something that should be quite easy. Now we can quickly access funding through the same platform I already use to run my business and don’t have to think about repayments as they’re automatically made as a portion of each sale,” said Tracey.
“The first round of funding helped to quickly boost supplies to support the opening of our first studio space in inner-city Perth, and we’ve since repaid the first round and accessed an additional round to fast-track the opening of three new studios across the city.”
Since launching in 2016, Shopify Capital has provided more than $3.8 billion USD in funding to tens of thousands of entrepreneurs in the US, UK and Canada — a 90% increase in total funding in the past 15 months.
This funding has been vital as businesses look to accelerate growth, with merchants that received funding through Shopify Capital averaging 36% higher sales in the following six months compared to their peers.
