Working Capital
Editorial Team
At Working Capital, we believe access to funding should be simple, transparent, and designed around your business not the other way around. We’re committed to helping entrepreneurs make smart financial decisions with tools, guidance, and lending partners they can trust.
Small business owners often need access to capital before they fully realize the return on their investment. You may need inventory before a busy season, funds to support expansion, or flexibility when incoming revenue does not line up with expenses. The challenge is finding financing that provides the right amount of access without creating repayment pressure.
Two working capital direct lenders that serve growing businesses are American Express and Shopify Capital. Both are designed to help small businesses access working capital, but they are built around very different models. American Express provides a revolving line of credit that qualified U.S. businesses can use as needed, while Shopify Capital offers short-term financing specifically for eligible Shopify merchants based on their store performance.
Those differences affect everything from who can qualify to how quickly funds can be accessed and how repayment impacts cash flow. Before choosing a financing option, understand how each structure works and what type of situation it is designed to support.
American Express does not offer a standalone short-term business loan or merchant cash advance. The shortest financing it offers is a six-month repayment term on its business line of credit.1 Businesses must first qualify for the revolving line of credit. Once approved, businesses can continue accessing available credit as previous draws are repaid, without submitting a new application.1
Shopify Capital offers merchant cash advances (MCAs) to eligible merchants in select countries, including the United Kingdom, Ireland, the Netherlands, and Spain. Rather than requiring a traditional application, Shopify analyzes a merchant’s store performance to determine eligibility and extends financing offers directly through the Shopify admin. Factors such as sales history, transaction volume, and overall business performance help determine whether a merchant receives an offer and the amount available.11
Because Shopify Capital is invitation-only, merchants cannot apply for funding on demand. Offers are generated based on a business’s activity within the Shopify ecosystem, and only merchants operating in eligible countries are considered. After an offer is accepted and the application is approved, Shopify disburses the merchant cash advance to the business’s designated bank account.11
Funding offers are tailored to each eligible merchant. Shopify continuously evaluates business performance and account activity to determine both eligibility and the size of available offers. Eligible merchants can choose from the available funding amounts, although the final approved amount may be adjusted during Shopify’s review process.8
Repayment is based on daily sales rather than a fixed payment schedule. Shopify automatically collects a predetermined percentage of the merchant’s daily sales until the agreed repayment amount has been satisfied. As sales increase, repayment accelerates. When sales decline, the amount collected decreases.11
The cost of a Shopify merchant cash advance is determined upfront through a fixed fee, allowing merchants to see the total amount they will remit before accepting an offer. Because the repayment amount is established at the start of the agreement, paying the advance faster does not reduce the total amount owed.11
Shopify Capital does not use traditional credit-based underwriting for its funding offers. Shopify states that eligibility is determined using factors such as sales performance, disputes, customer interactions, and platform history rather than a personal credit score.
The American Express Business Line of Credit, available through Amex Business Blueprint, provides eligible businesses with a revolving credit line. After approval, borrowers can access funds whenever needed by taking draws of $1,000 or more, up to their available credit limit, which can range from $2,000 to $250,000. Repayments replenish your available credit, so you can draw again from the line without reapplying.1
Each line of credit draw carries a fixed loan fee disclosed up front. Borrowers can choose repayment terms of six, 12, 18, or 24 months with fixed monthly payments. Paying off an installment draw early reduces the overall borrowing cost because unpaid monthly fees are waived. There are also no annual, maintenance, or inactivity fees associated with having a business credit line from this business line of credit provider, which helps keep financing costs down.1
To qualify, applicants typically need to have one year or more of operating history, a credit score of around 660 or higher, and average monthly business revenue of at least $3,000. Amex does not ask for collateral to secure the credit line, although a personal guarantee is required.1
Credit decisions are often available within minutes, and once a draw is requested, funds generally arrive within one to three business days, or as soon as the next business day for businesses using an American Express Business Checking account.1
Shopify does not currently offer a traditional business line of credit. Instead, Shopify provides access to short-term funding through Shopify Capital, where eligible merchants receive pre-approved financing offers based on their Shopify store performance.
Shopify Capital does not provide a reusable credit limit that businesses can draw from, repay, and borrow against again. Each funding offer is structured as a separate financing agreement with a set repayment amount and automatic repayment tied to Shopify sales. Once the advance or loan is repaid, merchants must receive and accept a new offer if they need additional funding.
Shopify Capital is better suited for merchants who want quick access to funds based on their existing sales activity rather than a reusable borrowing facility.
Shopify Capital provides short-term loans for businesses in select countries, including the United States, Canada, Australia, and Germany. Rather than submitting a traditional loan application, merchants receive personalized funding offers directly through Shopify Admin based on Shopify’s evaluation of factors, such as sales history, transaction activity, order volume, and account performance.8
Because Shopify Capital is invitation-based, merchants cannot apply for financing whenever they choose. Shopify’s internal review process determines which merchants receive offers. The available loan amount is determined individually, with terms and repayment details provided before the merchant accepts the offer.8
Funding amounts vary by business and are based on the offer Shopify provides. Eligible merchants can review the available loan amount, borrowing cost, and repayment terms directly within Shopify Admin before accepting financing. Once accepted and approved, funds are deposited into the merchant’s linked business bank account.8
Although Shopify Capital classifies this product as a business loan, repayment differs from a traditional term loan. Instead of fixed monthly payments, merchants repay through a predetermined percentage of their daily Shopify sales.7
The amount collected fluctuates with revenue. Businesses repay more during stronger sales periods and less when sales slow. Shopify requires borrowers to meet minimum repayment thresholds during the loan term, and repayment cannot extend beyond the maximum 18-month repayment period.7
Shopify Capital loans do not use traditional interest-based pricing. Merchants can select between a fixed-fee option, which establishes the total repayment cost upfront, and a monthly-fee option, where fees are charged only while the loan balance remains outstanding. Under the monthly-fee structure, repaying the loan early can reduce the overall cost by avoiding future monthly fees. Repayments for both structures are collected as a percentage of daily Shopify sales.7
The product is designed primarily for short-term working capital needs, such as purchasing inventory, funding marketing efforts, or managing cash flow fluctuations. Businesses seeking longer-term financing for major investments or expansion projects may require other lending solutions.
American Express business credit cards for small businesses help manage day-to-day operating expenses rather than provide ongoing access to working capital like a business line of credit. The company offers a wide selection of cards with different rewards structures, financing features, and annual fee levels, allowing businesses to choose a product that fits their spending habits and financial priorities.
The lineup includes cards that offer Membership Rewards®, cashback, travel perks, as well as business charge cards. Some products focus on straightforward cashback for everyday purchases, while others reward spending with rewards points that can be redeemed for travel, gift cards, statement credits, and other options.3
Businesses that travel frequently may benefit from premium cards that include features such as airport lounge access, travel protections, airline credits, and other travel-related benefits. Annual fees vary by product, with premium travel cards carrying significantly higher fees in exchange for expanded benefits.3
American Express’s business charge cards do not place a limit on spending, but they generally require balances to be paid in full at the end of each billing cycle. Some purchases qualify for the Pay Over Time feature, which allows repayment over time with applicable charges.3
American Express business credit cards also include a variety of account management tools designed for growing businesses. Depending on the card, these may include spending controls, employee cards, expense tracking, purchase protections, extended warranty coverage, and online account management features that help businesses monitor transactions and manage employee spending from a single dashboard. Some cards may also offer introductory promotions for eligible new cardmembers.3
Shopify Credit is a business Visa card available by invitation to eligible Shopify merchants. Issued through Celtic Bank, the card is designed for everyday business spending and offers a rewards structure based on purchase activity. Cardholders earn 3% cashback in one selected spending category and 1% cashback on eligible purchases in two additional categories, with no annual fee.9
The card operates primarily as a pay-in-full product, meaning merchants are generally expected to pay their statement balance each month. For businesses that need additional flexibility, Shopify offers a balance-carrying option that allows eligible purchases to be repaid over a period of up to 10 months. This extended payment feature uses a sales-based repayment structure and includes an additional fee.9
Shopify Credit is limited to businesses that sell through Shopify. Merchants with an active Shopify Capital loan are not eligible to hold Shopify Credit at the same time,9 meaning businesses must choose between the two financing options.
American Express Business Checking is a digital business checking account designed for small businesses that want a simple way to manage cash flow, receive payments, and access business banking tools alongside their American Express products. The account does not have a monthly maintenance fee or minimum balance, making it accessible for businesses that want a low-cost banking option.4
The account includes features such as mobile check deposit, bill payment capabilities, and integration with the American Express Business Blueprint platform, where businesses can view cash flow and manage eligible financing products in one place. Account holders can also earn interest on eligible balances and receive Membership Rewards points on qualifying debit card purchases when enrolled in the program.4
American Express Business Checking is primarily built for managing daily business finances rather than providing a lending facility. Businesses can use the account for routine banking needs such as holding operating funds, paying expenses, and separating business transactions from personal finances.4
Eligible customers may access certain American Express products and a connected view of their business finances through the Amex ecosystem.
Shopify Balance is a financial account designed for Shopify merchants who want to manage business funds directly within the Shopify platform. Rather than a traditional business checking account, Balance is built around ecommerce operations, allowing eligible merchants to receive Shopify Payments payouts, manage expenses, and access funds through a connected Visa® business card.10
The account is available to eligible Shopify merchants using Shopify Payments and is currently focused on businesses operating in the U.S. Shopify Balance does not charge monthly account fees or require a minimum balance, and merchants can use the account for everyday business activities such as paying expenses, transferring funds, and organizing money for different purposes.10
Merchants receive a Shopify Balance Visa® card that can be used for business purchases wherever Visa is accepted. Eligible purchases may earn cashback rewards, and account holders can also access features designed for ecommerce businesses, including faster access to Shopify payouts, dedicated accounts for organizing funds, and integrations that help manage business finances.10
Shopify Balance is designed primarily for merchants who already run their business through Shopify and want their banking activity connected to their store operations. Businesses that need traditional banking features such as branch access, broad cash deposit services, or more advanced commercial banking tools may need to consider a conventional business bank account instead.
Access to capital is only useful when the financing structure matches the way a business operates. A company with predictable expenses and a need for ongoing flexibility may value a different type of financing than a business looking for short-term funds tied directly to sales activity.
American Express and Shopify Capital take unique approaches to helping small businesses manage working capital needs. Understanding how each loan for small business owners works, who it is designed for, and how repayment fits into daily operations allows business owners to make a more informed decision based on their own financial situation and goals.
1https://www.americanexpress.com/en-us/business/blueprint/business-line-of-credit/
2https://www.americanexpress.com/en-us/business/blueprint/help-center/business-line-of-credit/fees
3https://www.americanexpress.com/us/credit-cards/business/business-credit-cards/nav=us_menu_cards_business_credit_cards_view_all_business_credit_cards
4https://www.americanexpress.com/en-us/business/checking/
5https://www.shopify.com/capital
6https://www.shopify.com/news/capital
7https://help.shopify.com/en/manual/finance/shopify-capital/united-states
8https://help.shopify.com/en/manual/finance/shopify-capital/eligibility#shopify-capital-eligibility-requirements
9https://www.shopify.com/credit
10https://www.shopify.com/balance
11https://help.shopify.com/en/manual/finance/shopify-capital/united-kingdom
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