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E-commerce platform Shopify has introduced a new business financing product to the Australian market, offering up to $2.5 million in funds repayable as a percentage of future sales.
Dubbed Shopify Capital, the Canadian e-commerce titan states the new financing facility is designed for existing Shopify users turned off by traditional bank business lending.
Opposed to loans repayable with interest, Shopify Capital repayments are built on a per-sale basis, with remittance paid by businesses as a percentage of each day’s takings.
The company claims it does not utilise personal credit checks or take equity in the businesses it lends to, instead relying on in-house review of business data to approve funding applications.
ABOUT THE AUTHOR
Senior Business Journalist
David Adams is a senior business journalist at SmartCompany. He is interested in the challenges and opportunities facing Australian businesses, along with the influences of technology, culture, and a changing climate. Before SmartCompany, David served as a reporter for Business Insider Australia. You can find him on Twitter at @DavidAdams_AU.
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