Shopify supports startups with $ 200 loans
The loans will be offered by Shopify Capital, giving new merchants $ 200 when they join Shopify and link a bank account.
“For the immigrant who is new to the country, the student in the college dorm and the mother who has been unemployed for a while, the start-up loan makes it a bit easier,” said Kaz Nejatian, vice president. and Managing Director of Shopify Financial Solutions. “That $ 200 can get you your first Instagram ad or logo. We’re really leveling the playing field.
Nejatian said that $ 200 “may not seem like a lot,” but Shopify has seen startups launch with just $ 200 and grow into multi-million dollar businesses.
Entrepreneurs do not need a personal guarantee or a credit check to get the loan. Funds are repaid in 60 days as a fixed percentage of sales. And if the ecommerce merchant isn’t making money, Shopify won’t require payment. Most borrowers will have a low interest rate in their teens.
“You have to have a Shopify business or use Shopify Payments,” Nejatian said. “It is designed to be the most user-friendly financing mechanism for traders to start a business. ”
He added that the majority of small business start-ups “don’t have a five-year plan and have terrible credit scores. This limits the number of companies that start operations.
Since the launch of Shopify Capital in April 2016, it has made more than $ 750 million in loans. Shopify hopes startups will use the money to start the next million small businesses.
“Shopify aims to encourage people to start businesses in 2020,” Nejatian said. “We’ve lowered the barriers for small businesses making it easier to set up an online store, easier shipping and now we want merchants to start their business as easily and quickly as possible. “
In May, Shopify acquired B2B e-commerce portal Handshake. In April, Shopify partnered with Snap to bolster merchant marketing plans and purchase Snapchat Story ad campaigns on the Shopify platform.