For small and medium-sized businesses, obtaining capital for growth can be a significant hurdle. Many eCommerce sellers using Shopify have turned to Shopify Working Capital as a tool to help push their business forward. While there are certainly many reasons to go down this route, there are some areas where Shopify often falls short in comparison to alternative funding options. Many other providers offer more comprehensive and affordable eCommerce funding solutions that might be a better fit.
To make the right decision for your business, it’s important to have all the information. This overview of funding solutions, compared to Shopify Working Capital, will provide you with everything you need to know to feel well-equipped in making decisions about how to fund your business.
Speed
Shopify Working Capital is a good option when it comes to speed and convenience. Unlike many traditional loan processes that can span weeks or even months, Shopify provides sellers with quick access to funds based on your store’s sales history and performance. It is important to note that this speed in offering available funds is not exclusive to Shopify. eCommerce funding solutions like Viably also offer fast and convenient access to funds. In many cases these funding solutions are actually faster overall thanks to expedited offers and immediate deposit into your bank account after you accept.
Payouts
Shopify’s working capital offers a fixed repayment structure over the course of 12 months, with repayments automatically deducted as a percentage of your daily sales. If your sales are consistent and your business is healthy enough that you’re not dependent on cash from daily sales, this may be a good fit.
However, if you’re looking for a more flexible payment structure Shopify Working Capital falls short in comparison with competitors. Many eCommerce-specific funding solutions offer far more flexible payment structures that are tailored to the needs of your business. If you’re looking for a more personalized funding solution, Shopify Working Capital isn’t necessarily tailored to accommodate for the varying needs of growing sellers.
Flexibility
Shopify Working Capital enables sellers to make strategic inventory investments and meet increasing customer demand, as well as purchase bigger orders to increase profit margins. While this is useful, Shopify falls short when it comes to providing customized solutions.
Inventory is not the only costly aspect of running an eCommerce business; you will likely also need funding to pay for a wide variety of opportunities, such as marketing. Funding solutions like Viably recognize the diverse needs of your business and have no requirements for how you use your funding. Comparatively, Shopify Working Capital greatly reduces your ability to grow in different directions.
Comprehensiveness
While Shopify Working Capital can offer fast access to funds and flexible repayment terms, it’s worth considering other financing options that provide more tailored solutions, transparent terms, comprehensive business support, and personalized customer service. Other eCommerce funding solutions offer entire suites of tools that can help your business grow without requiring you to pay for additional software. Viably is an all-in-one banking app made by and for eCommerce sellers. This powerful tool allows eCommerce businesses to operate more efficiently, grow more sustainably, and ultimately achieve higher levels of success.
Connect or schedule a meeting with a representative today to learn how Viably can help you build your business your way.
