Shopify Capital merchant cash advances in Ireland

In Ireland, Shopify Capital offers merchant cash advances. This type of funding involves selling a portion of your future sales, referred to as receivables. If your application for funding is accepted, then you're provided with a lump sum of money for a fixed fee. This lump sum is known as the amount advanced, and the total to remit is the amount advanced and the fixed fee.

In exchange, you're required to remit a percentage of your daily sales until the total to remit is received. The percentage of your daily sales that you must remit is known as the remittance rate, which is based on your risk profile.

For example, Shopify Capital might advance you €5,000 EUR for €5,650 EUR remitted from your store's future sales, with a remittance rate of 10%. The €5,000 EUR amount that you receive is transferred to your business bank account specified in your Shopify admin, and Shopify Capital receives 10% of your store's gross daily sales until the full €5,650 EUR total to remit has been remitted. You have the option, at any time, to remit any outstanding balance in a single lump sum.

There's no deadline for remitting the total to Shopify Capital. The daily remittance amount in EUR is determined by your store's daily sales, because the remittance rate is a percentage of your store's daily sales. The remittance amount is automatically debited from your business bank account.

If your remittances are paused or fail, then you might be in default of your merchant cash advance agreement.

Apply for a Shopify Capital merchant cash advance in Ireland

If you're eligible to apply for a merchant cash advance, then you can view your funding options and request a merchant cash advance directly from the Finance page of your Shopify admin. Funding isn't guaranteed, and an offer to apply might change or expire at any time.

You can customize the funding offer that you want to apply for, based on available offers. The terms of each option include the following information:

• The amount advanced.
• The total to remit. This is the amount of future receivables that Shopify Capital buys.
• The remittance rate. This is the percentage of your daily sales that are deducted and remitted to Shopify Capital.

The terms adjust automatically based on the Shopify Capital amount, but can't be customized independently. After you apply for funding, you can't change the offer amount.

After you apply for a merchant cash advance, your request is reviewed within 1-3 business days, but it might take longer in some cases. If your request is approved, then the amount advanced is transferred to your business bank account.

Steps:

Updating your bank account for repayments and Shopify Payments payouts

If you change the bank account for your remittances after you accept a merchant cash advance, then your bank account for Shopify Payments payouts is also updated and you must complete a new debit authorization agreement. You must confirm that the country and currency of the updated bank account for Shopify Payments and remittances matches the country and currency of the merchant cash advance before you submit your new debit authorization agreement.

Learn more about updating your bank account for Shopify Payments.

Requesting another Shopify Capital merchant cash advance in Ireland

You might qualify for a second merchant cash advance before you remit an existing merchant cash advance in full. If you're eligible for a second merchant cash advance, then new funding options display on the Finance page in your Shopify admin.

Managing your merchant cash advance remittances

After you receive your merchant cash advance, you can track the remaining balance of your total to remit from the Finance page of your Shopify admin in the Accounts section.

You can view the following remittance information from the Capital page of your Shopify admin:

• The remaining balance or total to remit.
• The amount that you've remitted.
• The percentage of the total that's remitted.
• The transfer history.

You can view each day's sales revenue in the Total sales column of the transfer history section. You can also view how much is remitted to Shopify Capital in the Amount column.

Download your balance letter

You can download a balance letter from the Finance page of your Shopify admin. You can use the balance letter to display your current outstanding balance with Shopify Capital, or when your merchant cash advance is fully remitted, to demonstrate that you have no outstanding financial obligations.

Steps:

Remit the remaining balance of your merchant cash advance

You have the option to remit any amount over €1 EUR for your merchant cash advance, or the full remaining balance in one lump sum. The remittance is debited from the same business bank account that's connected to your Shopify Payments account. Under your agreement, this is a repurchase of your receivables. The purchase price isn't reduced when you remit your entire balance, and remittance doesn't guarantee eligibility for more financing.

After you make a lump sum remittance, the amount is usually debited from your business bank account on the same day. Settlement of the lump sum remittance can take up to 14 days to complete. After the lump sum remittance is processed and complete, you receive an email confirmation. Your regular remittances are processed as usual during this time.

Steps:

Failed Shopify Capital merchant cash advances in Ireland

If your debit payments are paused or fail, then you might be in default of your loan agreement. In the event that your Shopify Capital repayment fails for the day, there are a few options available to address the situation:

• Automatic repayment: If the debited loan repayment fails, then Shopify won't attempt to debit the payment again. However, your next day's loan repayment, based on the daily repayment rate calculated from your store's daily sales revenue, will continue to be debited as usual.
• Manual payment: You can proactively address the missed payment by making a manual payment to cover the repayment failure. This helps ensure that your loan repayment remains on track.

Calculating merchant cash advance remittance

Every day that you make sales, a fixed percentage known as the remittance rate is applied to the gross amount of your sales to calculate your remittance. On days with higher sales, your remittance is larger. On days with lower sales, your remittance is smaller.

Your sales includes all sales that are associated with your Shopify account and the services that are provided under your account. This includes sales on your Shopify online store, at your retail locations, from any sales channels that you have, and through any apps, such as Shopify Marketplace Connect and Shopify Collective.

Daily sales revenue includes all orders that are marked as paid, regardless of the order source, the payment processing method that was used, or whether the order was later refunded or canceled. It also includes all charges on orders, such as shipping and handling, as well as any applicable sales taxes, such as duty and value-added taxes.

When calculating remittance, test orders that you place when Shopify Payments is in test mode aren't included in your store's daily sales revenue. If you place an order without test mode activated, then the order is included in your store's sales revenue for the day's remittance calculation.

You continue to make these remittances until Shopify Capital has received the full agreed-upon amount of your future sales revenue, known as the total to remit. Each remittance is automatically debited from your bank account and remitted to Shopify in accordance with your debit authorization agreement. If there are no sales on a particular day, then no remittance is processed for that day.

Example: 5-day remittance schedule for €15,000 EUR future sales revenue with 10% remittance rate to Shopify Capital

Secure your Shopify Capital account

If your Shopify account has been compromised and you use Shopify Capital merchant cash advances, then you must take immediate action to protect your finances and report fraudulent activity.

Contact Shopify Support immediately if you identify unauthorized Shopify Capital merchant cash advance activity. Remittances begin as soon as funding is disbursed, so time is critical. You can’t report Shopify Capital fraud in your Shopify admin.

Steps:

1. Review your merchant cash advance payment details for unauthorized funding.
2. If you identify unauthorized advances or changes to your remittance settings, then contact Shopify Support immediately.
3. Verify that the bank account connected to your Shopify Capital account hasn't been changed without authorization. Shopify Capital loan repayments are debited from any of the following accounts:
   • The bank account connected to Shopify Payments.
   • Your Shopify Balance account if it's set as your payout account.
   • The external bank account that you set up in your Shopify Capital settings (for non-Shopify Payments users).

Examples of fraudulent activity

The following types of activity might indicate that your Shopify Capital account has been compromised:

• Unauthorized funding: Advance funds requested or accepted without your knowledge.
• Unauthorized remittance setting changes: Unauthorized changes to your remittance rate or remittance settings.
• Unauthorized bank account changes: Unauthorized changes to the bank account used for Shopify Capital merchant cash advance debits.