Shopify announced it wants to help aspiring entrepreneurs realize their dreams through its new starter loans program.
Shopify will offer loans through Shopify Capital to help enterprising individuals who are short on funds get started with their business.
With the initial loan of $200 dollars, eligible Shopify Payments merchants can begin building their brand, adding inventory, or experimenting with marketing to start growing their business.
“For the immigrant who is new in the country, the student in the college dorm and the mom who has been out of work for awhile the starter loan makes it a little bit easier. That $200 can get you your first Instagram ad or logo. We’re really leveling the playing field.”
Kaz Nejatian, Vice President and General Manager, Shopify Financial Solutions
Skip the Tedious Loan Application Process
Qualified borrowers don’t need to go through the lengthy application process and credit checks.
Shopify Capital deposits the loan amount into a merchant’s bank account and is repaid in 60 days as a fixed percentage of the merchant’s sales.
If a borrower doesn’t make any money and pays back lesser than the amount they actually owe Shopify, they will be charged an interest rate.
The interest rate is computed by subtracting the total amount the seller has paid from their minimum payback amount for each of the 60-day period.
Note that a merchant must have a Shopify business or a Shopify Payments account to qualify for the starter loans.
Are you going to take advantage of Shopify’s starter loans?
Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.