post by:
Michael Goldstein
Company comparison
Shopify Capital
KEY FACTS
- Provide loans and merchant cash advances
- Eligibility and amount funded is by invite only, determined by your Shopify sales
- Application reviewed within 1 week
- 8-17% daily repayment deducted from daily sales
- Use the money as you see fit
- For use by Shopify sellers only
Clearco
KEY FACTS
- Requires $10k+ per month revenue for 6+ months
- Approval and funding in 24-48 hours for qualified applicants
- No interest – Clearco charges a flat fee when you are approved
- Repayment is a percentage of your sales with capped weekly payments
- No spending restrictions
- For use across multiple platforms (Amazon, Shopify, eBay)
Final Verdict
Shopify is a great way to earn capital for Shopify sellers. However, Clearco can reach beyond one platform and allow sellers to expand beyond one online shop and reach a larger customer base.
Clearco also has a much faster application, approval, and funding process to get money in your pocket as soon as possible. Shopify, on the other hand, takes up to 1 week to review and approve the application and another 1-2 days to fund the loan. This doesn’t make much sense since Shopify reviews your shop before they send the invite.
In addition, Shopify Capital requires that a business owner give up a portion of future revenue to pay back the loan. While your forecasted sales might look good, you’ll need to hand over some of your profits until the loan is paid back.
Ultimately, Clearco beats out Shopify with their flexibility and fast approval.