Shopify Capital is changing how entrepreneurs access financing, providing a much-needed capital injection into the entrepreneurial ecosystem. Traditional banking systems have always been a major barrier for entrepreneurs, with long and complex application processes leading to high rejection rates. This disparity disproportionately affects minority-owned and women-owned businesses, with 29% of small businesses in the United States collapsing due to lack of financing.
Since 2016, Shopify Capital It has distributed more than $5.1 billion to merchants, providing flexible financing options that meet the unique needs of small businesses. This innovative approach eliminates the need for lengthy applications, personal credit checks, and equity stakes, allowing entrepreneurs to focus on building their businesses rather than dealing with complex financial systems.
One of the main benefits of Shopify Capital is its ability to provide financing tailored to specific business needs. For example, women’s footwear company Pashion used funding from Capital to manage inventory, which led to a staggering 375% increase in holiday sales. “I don’t think we would have seen anything close to this growth number without it,” said Haley Pavone, CEO and founder.
To get a deeper understanding of the impact of Shopify Capital, we visited three merchants who used funding to turn their ideas into thriving businesses.
Hell Babes, a lifestyle brand founded by Jessica Wise, used funding from Capital to purchase inventory and design its own line of motorcycle jackets. “If it weren’t for the capital, I would be talking to banks, applying for lines of credit, waiting to see if I would get approved,” Jessica said.
Porter Road, an integrated meat company, used funding from Capital to support marketing campaigns, operational expenses and product photography. “Everyone said no,” noted co-founder Chris Carter, highlighting the challenges of securing financing through traditional means.
The Public Pet, a pet supply store founded by Jordan Lee, used funding from Capital to bolster inventory, improve the store’s aesthetics and grow its team. “Shopify Capital has definitely helped me open doors, windows, side doors, side doors…it’s definitely helped me experiment and realize that there are more possibilities out there,” Jordan said.
Image: Deposit images
