Shopify opens funding stream for Australian online retailers

E-commerce platform Shopify has launched a new funding service for Australian businesses called Shopify Capital.

Merchants who run their stores on the platform can receive offers of up to $2.5 million within two business days – once their apps are analyzed by the Shopify Capital team using machine learning and data-driven models.

The company says 67% of Australian merchants are deterred by high interest rates and 53% are discouraged by long application processes and delays. Nearly 40% of local merchants sell internationally through Shopify Markets, generating up to $39 million in economic activity.

“Australian businesses are concerned about the rising cost of capital, inflationary pressures affecting margins and declining consumer confidence affecting sales,” said Shaun Broughton, Apac MD at Shopify.

“Shopify Capital is only returned when a sale is made, so Australian merchants can be confident they can afford to invest in their businesses.”

Merchants repay funding based on a fixed “agreed” percentage of daily sales, reducing cash flow risk and uncertainty around compound interest rates and hidden costs.

Shopify Capital was first introduced in the US, UK, and Canada in 2016. So far, it has provided $5.51 billion in funding to thousands of businesses.

About Renee Williams

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