Getting to Know Shopify Finance

Streamline financial management with Shopify Finance

With its intuitive platform and user-friendly tools, Shopify makes it quick and easy for businesses of all shapes and sizes to build and manage a successful eCommerce store. 

But that’s not all it can do. Did you know that Shopify can also help you access funding and manage your business finances too?

According to Shopify, 39% of merchants feel that they spend too much time managing their daily business finances, and Shopify has the answer!

In its quest to streamline business operations for entrepreneurs, Shopify has launched Shopify Finance. Now, not only can you manage your online store from your Shopify admin panel, but you can also manage your business finances!

In this article, we’ll provide an overview of Shopify Finance, exploring the range of financial solutions Shopify offers and how these tools can be used to streamline and optimise your store’s financial management.

What is Shopify Finance?

Shopify announced Shopify Finance on October 29 2024. This new feature provides Shopify merchants with a centralised hub within their admin panel where they can manage all of their Shopify financial services, including Shopify Balance, Shopify Credit, Shopify Capital, Shopify Bill Pay, and Shopify Tax.

Shopify believes that “needlessly complicated finances should not overshadow the dream of running a business.” Shopify Finance aims to solve this pain point for entrepreneurs, removing financial obstacles like credit history requirements and rigid repayment terms and providing a straightforward and streamlined alternative to traditional banking services – all within the Shopify admin panel.

It’s important to note that Shopify is not a bank. It partners with various financial institutions, including Stripe Payments, to allow it to offer financial services to its customers.

What financial services does Shopify offer?

Over the years, Shopify has introduced several services to help both B2B and B2C business owners access funding and manage their finances more effectively. Not all of the services are available to merchants in the UK yet, but hopefully eligibility will be expanded in the future! 

Shopify Capital

The first financial service Shopify launched back in 2016 was Shopify Capital. Shopify Capital provides eligible businesses with access to funding, including cash advances and loans. The financing program is available by invitation only to businesses based in Australia, Canada, the UK, and the US. Shopify carries out a data-driven assessment to decide which businesses are eligible.

Shopify Balance

Next, we have Shopify Balance, which was introduced in 2020 and is currently only available to merchants in the USA and Puerto Rico. Shopify Balance is a free business account that can be accessed within the Shopify environment. Merchants can use it to manage their finances, including payments and transactions, all from one centralised location. Debit cards can be requested but can only be used for business purposes.

Shopify Tax

Shopify Tax was launched in 2022 and is available to merchants who sell in the UK, European Union, and USA. This handy tool helps merchants manage their tax obligations by determining where they are required to register and collect taxes based on each country’s tax regulations and VAT thresholds. It also automatically suggests categories for products, applies the most accurate value-added tax (VAT) rate, and generates and displays tax invoices on order confirmation pages for eligible orders.

Shopify Bill Pay

Shopify Bill Pay is another service that is only currently available to merchants in the US. It allows eligible merchants to schedule, pay, and manage their business bills from within their Shopify admin.

Shopify Credit

The most recent addition to Shopify’s finance suite is Shopify Credit, which was launched in 2023. Shopify Credit is currently only available to eligible businesses based in the USA or Puerto Rico. It is a pay-in-full business credit card that offers up to 3% cashback on eligible purchases.

What are the main features of Shopify Finance?

Shopify Finance is a centralised hub within the Shopify platform that merchants can use to manage all their Shopify financial services. Merchants can manage their cash flow, access flexible funding, and automate tax compliance, all without leaving the Shopify platform! Having everything in one place helps make financial management convenient and hassle-free. Shopify Finance also provides businesses with a comprehensive view of their business’s financial health and performance, allowing them to make more informed business decisions.

Let’s take a look at some of the key features of Shopify Finance and how it could benefit you and your business.

Centralised financial dashboard – Access and oversee all your Shopify financial services from one single dashboard to simplify your financial operations.

Fast access to funds – Access the capital your business needs quickly and easily. Merchants using Shopify Balance can gain access to the funds they earn from sales as soon as the next business day. Funds borrowed using Shopify Capital or Shopify Credit are also available very quickly. Shopify Credit merchants get instant access to credit after approval, while Shopify Capital merchants only need to wait a couple of days to access funds once approved.

Flexible funding options – Overcome financial obstacles by accessing flexible funding through Shopify Capital and Shopify Credit. Eligible businesses can access up to $2 million in fast funding, with no credit checks required, regardless of business size.

Streamlined business finances – Depending on your eligibility for Shopify’s various financial services, you could potentially manage your business accounts, bills, taxes, and credit all from one single interface, helping to save time and reduce complexity. 

Transparent and flexible repayment terms – Shopify Capital offers transparent loan terms and clear repayment structures based on sales, meaning you don’t need to make a repayment on days when you don’t sell anything. You can also access real-time insights from the hub to monitor repayment progress and maintain control over your financial commitments.

Offers based on business performance – Receive funding and credit offers tailored to your business’s performance, helping you to borrow with confidence.

Integrated cash flow insights – Monitor cash flow, track payments, and manage your financial accounts all from one place to gain a more holistic view of your business’s financial health.

Cashback – Shopify Credit provides up to 3% cashback on eligible purchases like marketing, fulfilment, and wholesale expenses. Merchants can also earn APY rewards on money in their Shopify Balance account.

Automated tax compliance – Use Shopify tax to automate sales tax calculations, filings, and remittances, with the option to set aside funds in your Shopify Balance account, all within the unified Shopify Finance interface.

Are there any fees associated with using Shopify Finance?

While there are no fees associated with accessing the Shopify Finance dashboard, each financial service within the suite has its own fee structure. For example, services like Shopify Capital have fixed fees tied to repayment terms, while Shopify Tax may start charging a fee after you have exceeded the free annual threshold. Make sure you read the terms and conditions of each service very carefully to ensure that you understand what fees are involved and to avoid unexpected charges.

Got a question about Shopify?

At Create8, we are proud to be a Shopify partner, meaning we know our stuff when it comes to the Shopify platform.

Whether you need help designing and building a brand new B2B Shopify store from scratch, upgrading to Shopify Plus, or have a question about optimising finances with Shopify Finance – get in touch with our team for tailored advice and support.

Contact us today to learn more about our work or our Shopify web design services.