Shopify Capital merchant cash advances in Spain

In Spain, you can apply for a Shopify Capital merchant cash advance. This type of funding involves selling a portion of your future sales, referred to as receivables. If you accept funding, then you receive 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 must remit a percentage of your daily sales until you complete the total to remit. Your risk profile determines the remittance rate, which is the percentage of your daily sales that you must remit to Shopify.

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.

Verifying your identity

During the Shopify Capital application process, you must verify your identity by completing a proof of liveness check. To complete a proof of liveness check, you use your webcam or phone to upload a selfie. You also need to verify your photo ID using one of the following methods:

• Use your webcam or phone to take a photo of your ID document.
• Upload a photo of your ID document.

Only the account owner can complete a Liveness check and photo ID verification. The account owner name must match the name on the document you provide.

Providing your identity document

When providing your identity document, ensure the following so that your identity document submission is successful:

• The account owner name must match the name on the document you provide.
• Capture a clear image. Make sure that the images aren't too dark or too bright, and that they don’t have glare.
• Take a live photo of the ID with your mobile device instead of uploading a scan.
• Capture the ID against a dark background. Bright, colorful or patterned backgrounds are less likely to be accepted.
• Don't block or edit any part of your ID document in the image.
• Avoid spaces with strong overhead lights. These cast a shadow or create glare on your ID document.

Completing the selfie check

When completing the selfie check, the following steps can help ensure that your selfie check is successful:

• Make sure that you give your device permission to access your camera/webcam
• Don't block any part of your face. Remove sunglasses, masks, or other accessories.
• Find a location with ambient lighting. Avoid sitting directly in front of a bright light that can wash out your face, or under strong overhead lights that cast a shadow on your face.

Shopify Capital document requirements for corporations in Spain

If your business is registered as a corporation in Spain, then you must provide additional documentation during the Shopify Capital application process. These documents help verify your business registration and ownership structure.

Required documents

Corporations must provide the following documents:

• Public deed of incorporation or a certificate from the Commercial Registry (Registro Mercantil): This document verifies that your business is legally registered. Certificates of registration from the Registro Mercantil or the Registro Mercantil Central satisfy this requirement.
• Certificate of beneficial ownership (acta de titularidad real): This document confirms the ownership structure of your business.

Form 036, which is a tax filing or receipt from the Agencia Tributaria, isn't accepted as a business verification document.

Document content requirements

The registry certificate that you provide must include the following information:

• The company's legal spelling as registered.
• The legal names of each owner or director.
• Confirmation of the authority and powers delegated to the authorized representatives, such as directors.

Apply for a Shopify Capital merchant cash advance in Spain

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 on 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, which is the amount of future receivables that Shopify Capital buys.
• The remittance rate, which 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 accepting 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 Spain

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 are displayed 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 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 if 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 against 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 additional financing.

When 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. You receive an email confirming that the lump sum remittance has been processed and is now complete. Your regular remittances are processed as usual during this time.

Steps:

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.