What funding solution is best suited for your eCommerce brand? Onramp Funds Vs. Shopify Capital

Onramp Funds and Shopify Capital both offer e-Commerce sellers funding with no equity required. We compare the two options below so you can make your own decision on which is best for you.

post by:
Carmen Marks

Company comparison

4.4
 

Onramp Funds

Cash Advances for eCommerce Sellers

KEY FACTS

  • Available to use with multiple selling platforms (Amazon, Shopify, BigCommerce)
  • Fast approval within 24 hours
  • Fees as low as 1% of sales
  • Required: at least 6 months of profitable sales
  • Funding for inventory purchases only
  • Repayment is made through percentage of your sales
VS
4.6
 

Shopify Capital

Equity-free capital for eCommerce Merchants

KEY FACTS

  • By invitation only to eligible Shopify merchants
  • Provide loans and merchant cash advances
  • Funding determined by predicted sales revenue 
  • Takes up to 1 week to review application and 24-48 hours to receive funds
  • No spending restrictions – allocate money where you see fit
  • High repayments, 8-17% of daily sales

KEY FACTS

  • Available to use with multiple selling platforms (Amazon, Shopify, BigCommerce)
  • Fast approval within 24 hours
  • Fees as low as 1% of sales
  • Required: at least 6 months of profitable sales
  • Funding for inventory purchases only
  • Repayment is made through percentage of your sales
  • By invitation only to eligible Shopify merchants
  • Provide loans and merchant cash advances
  • Funding determined by predicted sales revenue 
  • Takes up to 1 week to review application and 24-48 hours to receive funds
  • No spending restrictions – allocate money where you see fit
  • High repayments, 8-17% of daily sales

Final Verdict

While we love Shopify, it just does not make the cut when put up against Onramp Funds. For one, you can’t simply apply for capital with Shopify – you must be invited through your current Shopify store. Additionally, it takes days for approval and funding and does not allow you to integrate with other platforms. 

Onramp Funds is the winner here. Onramp Funds allows for more flexibility between platforms and provides fast approval for qualified applicants. Yes, the funds are limited to procuring inventory, but as inventory is generally one of the biggest expenses for eCommerce sellers, Onramp Funds frees up cash flow for you to grow your inventory and business.