Shopify Capital – Top 5 Alternatives for E-commerce Financing 

Most e-commerce firms approach financing to expand their operations, buy inventory, or increase marketing. Other funding options are similar to Shopify Capital, which a business owner may find more convenient and beneficial. The number of leads who signed up for a Shopify free trial reached 25 million in 2023.  

If you are looking for stunning alternatives for e-commerce financing, many on the list offer business owners a win-win situation. Here are five leading Alternatives that can transform sales for your online store. 

What is Shopify Capital? 

Shopify offers its merchants funding opportunities to pursue business expansion through its program, Shopify Capital. Shopify allows its merchants to access short-term financing instead of conventional loans through its cash advance program. Merchants pay back the funds through daily sales percentages. Shopify’s gross profit in 2023 was $3.5 billion. 

Top 5 Alternatives for E-commerce Financing 

1. Payability 

Payability is one of the best Shopify Capital alternative solutions, making it easy for e-commerce sellers to access capital. Unlike conventional business loans, payability gives business owners cash in advance depending on daily sales; thus, businessmen and women do not have to wait to close their cycles. 

Features: 

• Daily access to cash: Payability gives up to 80% of the merchants’ daily sales in advance to enable them to purchase inventory and advertise early. 

• No credit checks are necessary: Evaluation is based on previous sales records rather than credit check ratings, which appeals to sellers. 

• Fixed fee pricing model: While many competitors opt for interest-based pricing, Payability charges a fixed percentage of the sales as a fee. 

Pros: 

• Quicker access to funds than Shopify Capital: The funds are available within a day, which is better than Shopify Capital. 

• No credit score: This leaves room for the business credit score to be determined by business performance; thus, many sellers can access it. 

• Transparency of the fees: Instead of charging interest, which accumulates, payability has fixed fees. 

2. Clearco  

Clearco is an application that offers revenue-share financing for e-commerce and other businesses. It differs from conventional credit facilities, where Clearco purchases a stake in a company in exchange for a percentage of its revenues. 

Features: 

• Funding ranging from $10,000 to $10 million: Clearco offers considerably more capital than Shopify Capital, which is suitable for scaling companies. 

• No interest- only a flat fee: While operating, Clearco does not take an interest in the capital but takes an agreed amount of company revenue. 

• Efficient decision-making: The system’s operational ability depends on analyzing business proposals, which is followed by providing funding within 24-48 hours. 

Pros: 

• Affordable repayment structure: The repayment includes basing the interim compensation on the revenue. Hence, one pays more when the sales are high, while during low sales, one pays little. 

• No personal guarantees are needed: The business is funded, so the businessman is not at risk of losing his valuable assets. 

• Perfect for scaling companies: Clearco is most effective for businesses constantly growing and generating revenue. 

3. OnDeck 

OnDeck is an online business financing company that provides short-term micro business loans and business lines of credit. However, unlike Shopify Capital, OnDeck offers standard-term loans with concrete terms, which are more suitable for businesses that repay their loans in installments. 

Features: 

• $5,000 to $250,000: In terms of the number of offerings, OnDeck offers more products than Shopify Capital for small and medium-sized businesses. 

• Repayment Size Range: They offer manageable loan amounts to accommodate any small business’s needs. 

• It’s easy to apply and to get approval: The money can be obtained on the same day the application is approved. 

Pros: 

• Fixed, predictable payments: Unlike Shopify Capital, which deducts a percentage of daily sales, OnDeck has structured monthly payments. 

• Same-day funding available: Ideal for urgent business needs. 

4. Fundbox 

Fundbox supplies business credit lines for enterprises that require short-term financing options. In contrast with Shopify Capital, which offers a one-time cash advance, Fundbox allows the business owner to borrow under a line of credit. Fundbox is an excellent alternative for businesses that need quick, short-term funding rather than long-term growth capital. 

Features: 

• Lump sum loan up to 150000: The business can access the funds whenever it wants without qualifying for another loan. 

• Fast approval in as little as 15 minutes: Artificial intelligence makes it possible to approve any eligible business in just fifteen minutes. 

• Concise terms: Long and frequent repayment schedules may not suitably work for most businesses due to the discipline they impose on organizations. 

Pros: 

• No need for collateral: Unlike other loans, businesses do not have to pledge an asset as security. 

• Faster approval: Funds are approved in minutes instead of days. 

• Flexible product: The loan has a flexible structure that allows the borrowers to pay only fees for the amount borrowed. 

5. Lendio 

One finance marketplace that distinguishes Lendio is one meant to link small firms with various choices. Unlike single-source lenders, Lendio gives access to many lenders, allowing you to choose the best match for your e-commerce requirements. 

Features: 

• 75+ lenders providing SBA loans, lines of credit, term loans, and more accessible here. 

• One application covers many funding choices. 

• Quick approval accompanied by money is provided in 24 to 72 hours. 

• Adaptable solutions for every credit profile and company size. 

• Open terms are free from the obligation to accept offers. 

Pros: 

• Simplified Procedure for Application: Send one application to be matched with many lenders to save time and effort over applying with individual lenders. 

• Competitive Policies and Terms: A market system allows for comparative offers, allowing you to choose the best repayment conditions and rates. 

• Support for any credit score: Works with lenders who accept a broad spectrum of credit profiles, enabling companies with less-than-ideal credit. 

Lendio’s credit line service functions better than Shopify Capital for businesses needing adaptable financing options since it offers a revolving credit facility. 

Shopify Capital vs. Top Alternatives: Key Comparison 

Financing Option	Loan Amount	Repayment Terms	Approval Time	Best For
Shopify Capital	$200 to $2M	Fixed % of daily sales	1-3 days	Shopify store owners
Payability	Up to 80% of daily sales	Fixed fees	Instant	Rapid cash flow needs
Clearco	$10K to $10M	Revenue-based	24-48 hours	High-growth brands
OnDeck	$5K to $250K	3-24 months	Same day	SMEs with good credit
Fundbox	Up to $150K	Weekly repayments	Minutes	Short-term funding
Kabbage	$2K to $250K	Monthly repayments	A few days	Flexible credit needs

Conclusion 

Many Shopify merchants choose financing alternatives to Shopify Capital through Payability or Clearco, OnDeck, Stripe Capital, and Fundbox. Every alternative in the list is your ideal choice, offering the best in its respect with great rates, repayment terms, and funding capacities that match your business targets. 

If you are seeking a Shopify development expert to help your e-commerce idea take flight, CartCoders is the company for you. We are a dedicated Shopify development company offering compelling development services that deliver feature-rich solutions for your business, giving you the upper hand in sales.  

Choose our Shopify development company and scale your online business with a team of experts to the rescue. Contact us today to get expert Shopify development services.