Shopify Capital alternatives: 7 funding options for online stores

Key takeaways

• Shopify Capital now operates as two distinct products, Capital Flex (currently U.S.-only) and Merchant Cash Advance, each with different fees and repayment structures.
• The share of small business financing applicants seeking funding from online lenders rose from 2020 to 2025, but high interest rates and unfavorable repayment terms are often cited as the most common challenges.
• Eligibility and repayment structures vary widely across the seven Shopify Capital alternatives covered here, from invite-only platform financing to consignment-based, non-dilutive funding.
• CPG and inventory-heavy brands often need funding that aligns with sell-through rather than daily revenue, such as Kickfurther’s consignment-based (Co-Op) model.
• The right alternative for your business depends on what you’re funding, how quickly your inventory turns, and how much repayment flexibility you need.

If you’re searching for Shopify Capital alternatives, you’re probably running into one of two walls: You haven’t been invited to apply for Shopify Capital, or you already have funding through it and the daily sales deductions are squeezing your cash flow at the worst possible time.

You’re not alone: 38 percent of small employer firms applied for a loan, line of credit, or merchant cash advance in the prior 12 months, according to the Federal Reserve’s 2025 Small Business Credit Survey, and a growing share of those applicants are turning to online lenders rather than traditional banks.

This guide breaks down seven alternative funding options for online stores, including platform financing, revenue-based advances, traditional bank loans, and consignment-based inventory funding like Kickfurther, so you can find the option that best matches how quickly your inventory turns into revenue and how that timing lines up with repayment.

What is Shopify Capital?

Shopify Capital is Shopify’s built-in financing program, available by invitation to qualifying merchants in the United States, Canada, the United Kingdom, and Australia. Funding is offered directly through the Shopify admin (i.e., the dashboard merchants use to manage their store), with no personal credit check, and repayment collected automatically as a fixed percentage of the store’s daily sales.

The difference between Shopify Capital Flex and Merchant Cash Advance

As of 2026, Shopify Capital includes two distinct products:

1. Merchant Cash Advance is a lump-sum advance repaid through a fixed percentage of daily sales, with a flat fee applied to the total advance regardless of how quickly a merchant repays it.
2. Capital Flex is a revolving line of credit, with fees charged only on the outstanding balance and the ability to draw and repay repeatedly.

It’s important to note that Capital Flex is currently available only to select U.S. merchants. Sellers in Canada, the U.K., and Australia will see only the Merchant Cash Advance product in their Shopify admin account.

Shopify Capital requirements and eligibility

Shopify Capital isn’t something merchants can apply for directly. Shopify Capital eligibility criteria are determined by Shopify’s underwriting model, which reviews sales history, disputes, and customer engagement. Keep in mind that Shopify doesn’t disclose the exact thresholds it uses, so merchants won’t know that they qualify until they receive an offer. Merchants must also have sold on Shopify for at least 90 days. There is no personal credit check, but funding amounts and offers vary by merchant and are not guaranteed.

The Capital Flex product carries additional requirements, including a U.S.-based business and bank account and at least $50,000 in gross merchandise value (GMV) over the trailing 12 months.

Why Shopify sellers are searching for alternative financing options

Nationally, more small businesses are turning to online lenders for financing: The share of applicants seeking funding from online fintech lenders rose from 17 percent in 2020 to 29 percent of all applicants in 2025, according to the Federal Reserve’s Small Business Credit Survey. But satisfaction with those lenders has fallen sharply. That same survey found that 60 percent of those applicants who borrowed from online lenders found actual borrowing costs were higher than expected, and cited high interest rates and unfavorable repayment terms as the most common challenges.

For Shopify merchants specifically, the reasons for looking beyond Shopify Capital tend to fall into a few categories:

• Invite-only access leaves qualified merchants without an option at all
• Daily sales deductions pull cash out during already-slow periods
• Funding tied to one platform, with limited use for multichannel or wholesale sales
• Limited visibility into total cost compared to fixed-term financing

For a closer look at how Shopify Capital stacks up against a non-dilutive option, see our Shopify Capital vs Kickfurther comparison.

5 questions to ask before choosing a Shopify Capital alternative

Before signing up for any funding option, run through these five questions below. They surface the issues that most often cause friction after the capital arrives.

1. What am I really funding, and is the rest of my business ready for it?

If you’re funding marketing spend without enough inventory, you’re creating demand that your business can’t easily fulfill. Funding inventory without a plan to drive demand creates stranded capital. Match the funding to the part of the business causing the real bottleneck.

2. Will this repayment affect other obligations I already have?

Stacking multiple repayment structures can quickly compound. Even if each one is manageable on its own, the combined cash outflow can strain working capital when a business needs it most, such as during a slow sales month or while waiting on a large wholesale payment.

3. Does the repayment schedule match when my business actually generates cash?

A fast funding decision feels good, but the repayment structure runs for months. Make sure the timing aligns with inventory cycles, payment terms, and seasonal patterns. For example, funding that repays daily doesn’t fit well with a seasonal business that sees most of its revenue in two months of the year.

4. Am I optimizing for speed of approval or fit with my business?

Fast approvals don’t fix misaligned financing. A same-day approval can leave a business locked into unfavorable repayment terms that don’t match cash flow six months later. The best option is usually the one that still works once the initial funding need has passed.

5. Does this option require giving up equity or a personal guarantee?

Some financing options require a personal guarantee or trade equity for capital. Knowing this up front avoids surprises later, especially for early-stage brands considering long-term ownership.

7 funding options for Shopify stores

The right financing option comes down to a straightforward question: Does the repayment schedule match the timing of your sales? Each option below answers that differently.

Option	Funding type	Typical eligibility	Payment structure	Best for
Shopify Capital	Platform financing	Invite-only, based on Shopify sales history; active 90+ days	% of sales or revolving draw	Shopify sellers
Kickfurther	Consignment-based inventory funding	$200,000+ trailing 12-month revenue; physical product	Pay as inventory sells	CPG and inventory scaling brands
Wayflyer	Revenue-based financing	$10,000+ monthly revenue; 6+ months operating	% of daily revenue	Ad-driven e-commerce growth
Clearco	Revenue-based financing	12+ months of revenue; $100,000+/month	% of revenue	Paid acquisition scaling
Stripe Capital	Platform financing	Invite-only, based on Stripe payment data	% of payments	Stripe-native sellers
Amazon Lending	Platform financing	Invite-only, based on Amazon seller data	% of sales	Multichannel sellers also on Amazon
8fig	E-commerce financing	Active e-commerce sales history	% of sales (installments)	E-commerce sellers planning supply chain
Bank loan or line of credit	Traditional financing	Strong financials and credit score	Fixed monthly schedule	Established businesses

1. Kickfurther

Kickfurther is a marketplace-based consignment financing model in which inventory is funded upfront by a community of Buyers, and brands pay for that inventory as it sells. There are no fixed monthly payments and no daily sales sweeps. Because funding is non-dilutive, brands keep full ownership and don’t take on traditional debt. Kickfurther works with brands once they’ve reached at least $200,000 in trailing 12-month revenue and have an established physical product. It’s best suited for CPG and inventory-heavy e-commerce brands managing wholesale orders, seasonal inventory, or long production timelines.

2. Wayflyer

Wayflyer is a revenue-based financing provider for e-commerce and DTC brands, offering cash advances and term loans with repayment collected as a percentage of daily revenue or through fixed installments. Funding can land in as little as one business day. Wayflyer is best for e-commerce brands funding paid acquisition with short revenue cycles, though continuous repayment can strain cash flow for brands with longer inventory cycles.

3. Clearco

Clearco offers revenue-based financing through several products:

• Fixed Funding Capacity: A one-time upfront amount with a set repayment schedule
• Rolling Funding Capacity: An ongoing line of funding that replenishes as the business repays it, so capital stays available without reapplying
• Cash Advance: Working capital deposited directly for general use
• Invoice Funding: Pays time-sensitive vendor bills, including inventory orders, with capped weekly payments

Clearco is best for brands with steady, predictable revenue that want short-term coverage for marketing spend or vendor invoices.

4. Stripe Capital

Stripe Capital offers built-in financing based on a merchant’s existing Stripe payment data, with repayment deducted as a percentage of daily payment volume. Like Shopify Capital, access is invite-only and tied entirely to one platform. It’s best for Stripe-native sellers who want frictionless funding without a separate application, though it shares the same platform lock-in tradeoff as Shopify Capital.

5. Amazon Lending

Amazon Lending offers invite-only financing to qualifying Amazon sellers, based on their sales history and platform account performance. Repayment terms vary by offer. It’s a useful option for sellers who sell only on Amazon, since funding is based on Amazon-specific performance data and is restricted to spending on Amazon-only initiatives.

6. 8fig

8fig is an e-commerce financing provider built around supply chain planning, now operating under Bizcap after a 2025 acquisition. Funding is delivered in installments aligned with a brand’s cash flow needs, with repayment tied to sales. It’s best for e-commerce sellers actively planning inventory and supply chain spend, particularly around larger restocks or new product launches.

7. Traditional bank loan or line of credit

Bank loans and lines of credit offer the lowest cost of capital for businesses that qualify, since they’re priced on creditworthiness rather than a flat factor rate. An SBA 7(a) loan, for example, can provide up to $5 million in financing with longer repayment terms of up to 25 years, but approval generally takes 60 to 90 days and requires strong financials and documentation. This option is best for established brands with predictable revenue and the ability to manage a longer approval process.

How Goodwipes funded inventory without taking on debt or giving up equity

Like many growing CPG brands, Goodwipes faced a familiar problem: Rising demand for its plant-based, hypoallergenic wipes, but not enough cash flow on hand to produce the inventory needed to keep up. Without additional stock, growth would have stalled. Through Kickfurther’s consignment-based funding, Goodwipes secured the capital needed to produce enough inventory to meet demand. Unlike financing tied to daily sales deductions, payments followed inventory sell-through, so cash flow stayed aligned with when the product actually moved.

“

We needed inventory to grow, and a company doesn’t always have the money to produce enough inventory. Thank god we found David and everyone at Kickfurther.

— Sam Nebel, President, Goodwipes

Choosing the right online funding option for growth

There’s no single best Shopify Capital alternative—only the one whose repayment schedule matches the pace at which your business actually gets paid. Revenue-based options like Wayflyer and Clearco can work well for brands funding marketing spend with short, fast-turning sales cycles. Platform financing, such as Stripe Capital and Amazon Lending, offers convenience for merchants who are comfortable staying within a single platform. Traditional bank financing remains the lowest-cost option for brands that qualify and can wait out a longer approval process.

For CPG and inventory-heavy brands, the bigger constraint usually isn’t access to capital; it’s how that capital is repaid. Kickfurther’s Co-Op model aligns payments with sell-through rather than a fixed schedule, so brands aren’t paying faster than their product is moving. Running through the five questions above before committing to any option can help confirm the right fit.

Frequently asked questions (FAQs)

What are some financing options for scaling my Shopify store?

Shopify merchants have several options beyond Shopify Capital, including revenue-based financing (Wayflyer, Clearco), platform financing (Stripe Capital, Amazon Lending), traditional bank loans or lines of credit, and consignment-based inventory funding from Kickfurther. The right choice depends on what’s being funded and how quickly the business generates cash to repay it.

Can I get Shopify Capital and another loan at the same time?

It depends on the terms of each agreement. Some lenders restrict stacking additional financing on top of an existing advance, particularly when repayment is tied to a percentage of sales. Before combining funding sources, check both agreements for restrictions and consider whether the combined repayment obligations fit your business’ cash flow.

How much does Shopify Capital really cost?

Shopify Capital’s cost depends on which product you qualify for. Merchant Cash Advance applies a flat fee to the total advance amount, which is disclosed upfront, regardless of repayment speed. Capital Flex charges fees only on the outstanding balance, so cost depends on how long funds are drawn. Neither product discloses a traditional annual percentage rate, which can make it harder to compare to fixed-term financing.

Is Shopify Capital a loan?

Shopify Capital’s Merchant Cash Advance product is not a traditional loan. It’s a purchase of future sales in exchange for an upfront advance, repaid through a percentage of daily sales. Capital Flex functions more like a revolving line of credit. Because of this structure, Shopify Capital may not affect a merchant’s personal credit in the same way a conventional bank loan would. Merchants should confirm this directly with Shopify, since credit-reporting practices can change.

Does Shopify Capital affect my personal credit score?

Shopify Capital does not run a personal credit check during underwriting and is not typically reported in a way that affects a merchant’s personal credit score, since funding decisions are based on store sales data rather than personal financial history. Merchants should still review their specific funding agreement, since terms can vary.

Is Kickfurther a good alternative to Shopify Capital for CPG brands?

For CPG and other inventory-heavy brands, Kickfurther can be a strong alternative because payments are tied to inventory sell-through rather than a fixed schedule or daily revenue deduction. It’s best suited for brands with an established physical product and at least $200,000 in trailing 12-month revenue.