What is Shopify Capital eligibility based on?

Shopify Capital eligibility is primarily based on your Shopify business performance, not just on a traditional personal credit score. Shopify evaluates data from your store to determine whether your business may qualify for a funding offer and how much funding it may be eligible to receive.

The main factors Shopify considers

Although Shopify does not publish a single fixed formula, eligibility is generally influenced by several business-performance factors:

• Sales history: Consistent and growing sales are one of the strongest indicators Shopify considers.

• Revenue volume: The amount of revenue your store generates over time helps determine both eligibility and potential funding size.

• Order activity: The number and frequency of customer orders can indicate the stability of your business.

• Store performance trends: Shopify may evaluate whether sales are increasing, stable, or declining.

• Customer activity: Repeat purchases and ongoing customer engagement can contribute to a stronger business profile.

• Repayment history: If you previously received Shopify Capital funding, successfully repaying it can improve the likelihood of receiving future funding offers.

• Overall business health: Shopify uses information available within its platform to assess the operating performance of your store.

What Shopify does not primarily rely on

Unlike many traditional lenders, Shopify Capital generally does not base eligibility primarily on a personal credit score. Instead, Shopify uses the business data generated through your Shopify store, which allows it to evaluate merchants without requiring the same extensive documentation that banks often request.

How merchants become eligible

Shopify Capital is typically offered only to eligible merchants. If your business qualifies, a funding offer may appear directly in your Shopify admin. Merchants generally cannot submit a standard application to force eligibility; Shopify determines eligibility based on its ongoing evaluation of store performance.

Why eligibility can change over time

Eligibility is not permanent. A merchant who is not eligible today may become eligible later if business performance improves. Likewise, the amount available can increase or decrease over time as sales, revenue, and other business metrics change.

Overall, Shopify Capital eligibility is based mainly on your Shopify store’s sales performance, revenue, order activity, business trends, and overall store health, with previous repayment history also playing an important role for merchants who have used Shopify Capital before.