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.
Most small business owners don’t struggle because capital is unavailable. Financial problems show up when access to the right type of funding is out of reach. A financing offer that doesn’t scale with growth, or a long-term loan that takes weeks to secure, can both create friction when cash flow is already tight.
Lendistry and Shopify Capital reflect two very different financing philosophies. One is built around structured long-term business loans designed for multi-year growth and investment needs. The other is embedded directly inside the Shopify ecosystem, offering pre-qualified working capital based on store performance. Both aim to solve liquidity needs, but they do so through entirely different financing options that play to different business scenarios.
For business owners comparing the two, understanding that distinction is what enables them to make a meaningful financial decision.
SBA Preferred Lender offering long-term, government-backed, and traditional financing for established U.S. small businesses. Also administers grants and financial education programs.1
Platform-embedded, pre-approved short-term loans for Shopify merchants, repaid as a percentage of daily Shopify sales.6
SBA loans, including 7(a), 504, and commercial real estate loans. Also, offers traditional term loans and non-revolving lines of credit.1
Short-term business loans repaid as a percentage of daily Shopify sales.6 Two fee structures available: fixed factor-rate or monthly fee.9 Shopify Credit (pay-in-full Visa card) also offered.11
Any qualifying U.S. small business. Minimum 640 FICO necessary to qualify for most products.1 SBA loan applicants should have 650+ credit score and two or more years in business.3
Exclusively for Shopify merchants in the U.S., Canada, U.K., Australia, Netherlands, and Germany who have used Shopify for at least three months and meet Shopify’s internal sales and performance benchmarks. Pre-approved offers appear in the Shopify admin dashboard. No self-initiated application.10
Loan amounts range from $25,000 to $5 million for most loans. Commercial real estate loans may extend up to $10 million.2
Loans start at a few hundred dollars8 and can reach up to $2 million for the highest-performing Shopify merchants6
Traditional term loans may fund in two business days. Funds from SBA working capital loans may be available as soon as five days.2 Most SBA loans take longer to process.
Pre-approved Shopify merchants may see offers in the Shopify dashboard. After accepting an offer, funds typically arrive within two to five business days.6
Generally up to five years for business term loans.9 Non-revolving LOC offers up to 2-year draw period, then up to 5-year repayment. SBA 7(a) terms may be up to 10 years (up to 25 years for commercial real estate).2
Deducts payments based on a fixed percentage of daily Shopify sales. Max term 12-18 months.6,9 Borrowers must meet minimum repayment milestones in the first six and 12 months.9
Terms loans carry a variable interest rate based on WSJ Prime Rate + a percentage.1 Prepayment penalties apply on most loan options.2
For loans with a fixed factor-rate, the total repayment is set upfront. Monthly fees are charged each month while the balance remains. Paying early stops further fee accrual, reducing total cost.9
Minimum 640 credit score required for most products. Higher thresholds for SBA loans.3
No personal credit check. Approval based entirely on Shopify store performance data.6
Collateral and personal guarantees may be required depending on the loan type, amount, and underwriting criteria, particularly for certain programs such as SBA loans.4
No personal guarantee required for most loans. Shopify may place a lien on business assets in some circumstances.9
SBA Preferred Lender. Directly funds SBA 7(a) and 504 loans for U.S. businesses.1
Not offered.
Not offered.
Shopify Credit is a pay-in-full Visa card earning up to 3% cashback in a chosen category and 1% elsewhere. No annual fee. Application available by invitation only. Cannot be held simultaneously with an active Shopify Capital loan.11
SBA Preferred Lender offering long-term, government-backed, and traditional financing for established U.S. small businesses. Also administers grants and financial education programs.1
Platform-embedded, pre-approved short-term loans for Shopify merchants, repaid as a percentage of daily Shopify sales.6
SBA loans, including 7(a), 504, and commercial real estate loans. Also, offers traditional term loans and non-revolving lines of credit.5
Short-term business loans repaid as a percentage of daily Shopify sales.6 Two fee structures available: fixed factor-rate or monthly fee.9 Shopify Credit (pay-in-full Visa card) also offered.11
Any qualifying U.S. small business. Minimum 640 FICO necessary to qualify for most products.1 SBA loan applicants should have 650+ credit score and two or more years in business.3
Exclusively for Shopify merchants in the U.S., Canada, U.K., Australia, Netherlands, and Germany who have used Shopify for at least three months and meet Shopify’s internal sales and performance benchmarks. Pre-approved offers appear in the Shopify admin dashboard. No self-initiated application.10
Loan amounts range from $25,000 to $5 million for most loans. Commercial real estate loans may extend up to $10 million.2
Loans start at a few hundred dollars8 and can reach up to $2 million for the highest-performing Shopify merchants.6
Traditional term loans may fund in two business days. Funds from SBA working capital loans may be available as soon as five days.2 Most SBA loans take longer to process.
Pre-approved Shopify merchants may see offers in the Shopify dashboard. After accepting an offer, funds typically arrive within two to five business days.6
Generally up to five years for business term loans.9 Non-revolving LOC offers up to 2-year draw period, then up to 5-year repayment. SBA 7(a) terms may be up to 10 years (up to 25 years for commercial real estate).9
Deducts payments based on a fixed percentage of daily Shopify sales. Max term 12-18 months.6,9 Borrowers must meet minimum repayment milestones in the first six and 12 months.9
Terms loans carry a variable interest rate based on WSJ Prime Rate + a percentage.1 Prepayment penalties apply on most loan options.2
For loans with a fixed factor-rate, the total repayment is set upfront. Monthly fees are charged each month while the balance remains. Paying early stops further fee accrual, reducing total cost.9
Minimum 640 credit score required for most products. Higher thresholds for SBA loans.3
No personal credit check. Approval based entirely on Shopify store performance data.6
Applicants must actively process payments through PayPal to qualify for working capital. Getting a business loan only requires a PayPal Business account.1
No platform requirement. Open to any qualifying UK-registered business.
Collateral and personal guarantees may be required depending on the loan type, amount, and underwriting criteria, particularly for certain programs such as SBA loans.4
No personal guarantee required for most loans. Shopify may place a lien on business assets in some circumstances.9
SBA Preferred Lender. Directly funds SBA 7(a) and 504 loans for U.S. businesses.1
Not offered.
Not offered.
Shopify Credit is a pay-in-full Visa card earning up to 3% cashback in a chosen category and 1% elsewhere. No annual fee. Application available by invitation only. Cannot be held simultaneously with an active Shopify Capital loan.11
Lendistry offers a business line of credit with funding amounts typically ranging from $25,000 up to $5 million.2 Unlike a traditional revolving line of credit, where repaid funds become available to borrow again, Lendistry’s non-revolving structure does not replenish available credit once funds are drawn and repaid.
Instead, the approved credit limit remains fixed at the original amount for the duration of the draw period, which can last up to two years. During this time, businesses can access funds up to their approved limit, but the total available credit does not reset as repayments are made. After the draw period ends, any outstanding balance transitions into a structured repayment phase of up to five years, allowing borrowers to pay down the remaining balance through scheduled installments.2
Interest rates are variable and generally tied to the WSJ Prime Rate, with the final rate determined by credit profile, business performance, and overall risk assessment.1 In some cases, prepayment penalties may apply during the first two years, which is an important consideration for borrowers evaluating early payoff strategies or refinancing plans.2
Eligibility typically requires at least two years in business, along with a minimum credit score of around 640.1 As with most structured credit facilities, approval depends on a full underwriting review of business financials, cash flow stability, and creditworthiness.
Business line of credit providers often offer this type of financing to established businesses seeking access to flexible working capital for planned expenses, seasonal needs, or growth initiatives, where structured access to funds and longer repayment horizons are more important than short-term, fast-turn funding.
Shopify Capital does not offer a traditional business line of credit product. While Shopify Capital provides funding options to eligible merchants, its financing is structured as short-term, revenue-based capital rather than a revolving credit facility.
Unlike a line of credit, Shopify Capital funding is repaid through a percentage of daily sales, and available funding does not function as a revolving credit line where repaid amounts become reusable credit.
As a result, Shopify Capital is not designed to function as a multi-draw or revolving credit product, and merchants seeking a traditional line of credit structure typically need to look to other financing providers.
Lendistry does not offer merchant cash advances or revenue-based, short-term financing products. Instead, its lending approach focuses on more traditional financing structures, including term loans and SBA-backed loan programs.
For businesses with short-term working capital needs, Lendistry’s closest available option is its traditional term loan product. While not structured as a short-term or daily-repayment solution, it can be used to support general working capital needs. Because the structure is based on a more traditional lending model, businesses should expect a defined application and underwriting process before funding is approved.
Shopify Capital loans are not merchant cash advances. However, the repayment structure is revenue-based. Shopify’s algorithm evaluates each store’s sales trends, transaction volume, growth trajectory, and operational metrics, then extends personalized loan offers within the Shopify admin dashboard. Merchants cannot self-initiate an application.10
Short-term business loans for working capital needs start at a few hundred dollars and reach up to $2 million for the highest-volume merchants. Merchants who accept a loan offer can expect to receive funds within two to five business days.8,6
Repayment is automated as a fixed percentage of daily Shopify sales, with no payment taken on zero-sales days. Shopify caps loan terms at 18 months and requires borrowers to meet minimum repayment milestones in each of the first two six-month periods.9
Shopify offers two fee structures. Under its fixed factor-rate model, the total cost of capital is set, and early payoff provides no savings. The monthly-fee model charges a recurring fee, but paying off the loan early stops further monthly charges and reduces the total cost. No personal credit check, personal guarantee, or collateral is required for most loans.9
Lendistry is a business term loan provider with offers starting at $25,000 and repayment terms of up to five years, with fixed monthly installment payments.2 This structure can provide more predictability compared to variable daily repayment models, but it also requires borrowers to plan for consistent monthly obligations.
Rates are variable and generally tied to WSJ Prime, meaning borrowing costs may fluctuate with broader interest rate changes.1 In some cases, prepayment penalties may apply, which borrowers should consider when evaluating the total cost of borrowing and potential early payoff strategies.2
Lendistry’s term loan is not designed for situations where funding is needed within hours or with minimal documentation. Funding can occur in as few as two business days once documentation is complete.2 These loans are suited for established businesses planning significant investments, such as expansion, refinancing, hiring, or major operational changes, where a structured multi-year repayment schedule and competitive rates outweigh the cost and time of the application process.
Shopify Capital does not offer traditional multi-year business term loans. Instead, its funding is structured as short-term advances that are typically capped at up to 18 months and repaid through a percentage of daily sales rather than fixed monthly installments.6,9
This revenue-based repayment model means payments fluctuate with business performance, which can be helpful during slower sales periods but offers less predictability than a fixed repayment schedule.
For Shopify merchants seeking financing over longer terms, or those who prefer consistent monthly payments that are not tied directly to daily sales volume, Shopify Capital’s funding model is not designed to meet those needs.
Lendistry is an SBA Preferred Lender, which means it has delegated authority to underwrite, approve, and fund certain SBA 7(a) loans internally without requiring full SBA review prior to approval. This can help streamline parts of the process of applying for these online loans for small business needs compared to non-preferred lenders, though all SBA lending still follows federal guidelines and documentation requirements.1
Qualified U.S. businesses may access up to $5 million in SBA 7(a) funding,2 with variable rates typically starting around WSJ Prime + 2%, depending on credit profile and financial strength.1 Repayment terms extend up to 10 years for general business loans and up to 25 years on loans for real estate, in line with SBA standards.2
Lendistry also participates in SBA 504 loan programs, which support long-term financing for fixed assets such as real estate and equipment.
Standard SBA qualification generally includes a 650+ credit score, at least two years in business, and sufficient financial documentation to support underwriting.3 Even with Preferred Lender status, the SBA process typically takes several weeks from application to funding, depending on complexity and documentation.
Shopify Capital does not provide SBA loans or any government-backed financing programs. Its funding model is based on automated underwriting tied to a merchant’s Shopify sales performance, which differs significantly from the documentation and eligibility requirements used in SBA lending. Merchants seeking SBA financing must apply directly through SBA-approved lenders outside of the Shopify platform.
Lendistry administers grant programs in partnership with government agencies and private organizations, primarily targeted at small businesses in underserved communities. These grants are applied for online through Lendistry’s platform and do not require repayment. Lendistry also provides financial education resources to help business owners understand lending products, build creditworthiness, and improve long-term financial health.5 This community-oriented dimension is a meaningful differentiator that distinguishes Lendistry from other top working capital lenders.
Shopify Capital does not administer grant programs or provide financial education resources. Its offering is focused entirely on short-term merchant financing within the Shopify ecosystem, with no community program or educational dimension.
Lendistry does not offer or facilitate business credit cards. Its lending products are focused on structured financing solutions, including term loans, non-revolving lines of credit, and SBA-backed loans. These products are designed for businesses seeking defined funding amounts with set repayment structures rather than revolving credit access.
Businesses that need a business credit card for ongoing, flexible spending and revolving credit limits would need to apply through a separate card issuer, as that type of product is not part of Lendistry’s lending offerings.
Shopify Credit is a pay-in-full Visa business card available by invitation to eligible Shopify merchants. It offers up to 3% cashback in a selected spending category and 1% on all other eligible purchases, with no annual fee. Because it is structured as a pay-in-full card, the full statement balance is generally due each month, though qualifying merchants may have the option to carry a balance for up to 10 months with an associated fee.11
Eligibility is limited to invited Shopify merchants, and access is determined based on account activity and platform data. One key restriction is that merchants with an active Shopify Capital loan are not eligible to apply for Shopify Credit, meaning the two products cannot be held at the same time.11
Both Lendistry and Shopify Capital are structured around very different assumptions about how businesses access and manage capital. Lendistry operates within a more traditional lending framework that includes SBA-backed loans, term loans, and non-revolving lines of credit, along with access to select grant programs administered in partnership with government and private organizations.
Shopify Capital, by contrast, is built entirely around platform-based merchant performance data and provides short-term, revenue-linked financing that is integrated directly into the Shopify ecosystem. These structural differences shape not only eligibility and underwriting, but also repayment and timelines.
For businesses, the most important distinction is not simply the product name, but how they access and repay capital. Shopify Capital is designed for speed and repayment that flexes with daily sales, which can align well with short-term needs tied to platform activity. Lendistry’s offerings, meanwhile, are built around documentation-based underwriting, fixed repayment schedules, and longer planning horizons, including long-term small business loans and SBA programs.
Ultimately, the choice between these types of financing depends on the nature of the need rather than the availability of capital alone. Understanding those distinctions helps identify which financing approach aligns with a business’s needs, rather than treating all capital sources as interchangeable.
1https://lendistry.com/faqs/
2https://lendistrypartners.com/wp-content/uploads/Lendistry-Product-Guide-Final-20240404.pdf
3https://lendistry.com/small-business-lending/
4https://lendistry.com/resources/
5https://lendistry.com/grants-and-programs/
6https://www.shopify.com/capital
7https://help.shopify.com/en/manual/finance/shopify-capital/eligibility#shopify-capital-availability-and-funding-options
8https://www.shopify.com/news/capital
9https://help.shopify.com/en/manual/finance/shopify-capital/united-states
10https://help.shopify.com/en/manual/finance/shopify-capital/eligibility#shopify-capital-eligibility-requirements
11https://www.shopify.com/credit
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