Stripe Capital vs Shopify Capital 2026

Stripe

Stripe Capital

Revenue-based financing for Stripe payment-processing customers

• Type: Revenue-based financing
• Funding speed: 1–3 days
• Revenue needed: 6–12+ months
• Pricing: Factor rate

Pros

• Platform-native underwriting — no external credit application required
• Repayment scales with Stripe revenue — slow weeks pay less automatically
• Fast: 1–3 days from approval for established Stripe customers
• No personal guarantee required in most cases

Apply at Stripe →

Shopify

Shopify Capital

Revenue-based financing for Shopify sellers

• Type: Revenue-based financing
• Funding speed: 1–3 days
• Revenue needed: A few months
• Pricing: Factor rate

Pros

• Platform-native underwriting from Shopify sales data — no external application
• Repayment as % of Shopify sales scales with business performance
• Fast funding for established Shopify sellers
• No personal credit pull required in most cases

Apply at Shopify →

Both products are structured as revenue-based financing: repayment is collected as a fixed percentage of daily payouts (Stripe payouts for Stripe Capital; Shopify payouts for Shopify Capital). If your sales drop, the daily repayment amount drops proportionally — but the total amount owed does not decrease. The holdback continues until the full payback amount is collected, which extends the repayment period during slow sales periods. Neither product forgives the balance on lower sales; they flex the pace, not the total.

Neither charges an APR in the traditional loan sense. Instead, both charge a flat financing fee added to the advance amount at funding — the total payback equals advance + fee. The effective annualized cost depends on how quickly the advance is repaid (faster repayment = higher effective APR). California (SB 1235) requires APR-equivalent disclosure for commercial financing products; check current offer terms at stripe.com/capital and shopify.com/capital for the specific fee and total cost in any offer.

Stripe Capital and Shopify Capital offers are based on platform payment data and do not require a hard personal credit pull for eligibility or acceptance in most cases. This means the offer process typically does not generate an inquiry on your personal credit report. However, financing practices can change — verify current terms directly with Stripe and Shopify before assuming no credit check. Neither product currently reports repayment history to business credit bureaus, though this too can change.

Both extend pre-screened offers calibrated to your platform revenue — not a fixed borrowing menu. Stripe Capital offers have typically ranged from a few thousand dollars to several hundred thousand for high-volume merchants. Shopify Capital offer amounts have ranged from as low as $200 to over $2 million for large-volume merchants per Shopify's published eligibility disclosures. The specific amount in your offer reflects your individual platform activity. Confirm current offer parameters at stripe.com/capital and shopify.com/capital.

Both platforms are designed for fast, automated funding — typically within 1–2 business days of offer acceptance, credited directly to your Stripe balance or Shopify Payments payout account. Funding speed is faster than a traditional bank loan precisely because underwriting was completed algorithmically before the offer was presented. Verify current funding timelines at each platform's help documentation, as processing times can vary with payout schedules.

Both use factor-rate pricing: total repayment equals the advance amount plus a flat fee, disclosed at the time of the offer. Factor rates are not published universally — they depend on your platform data and the specific offer. Revenue-based financing factor rates in the merchant advance market typically range from 1.1 to 1.5 (a $10,000 advance costing $11,000–$15,000 total). California SB 1235, effective 2022, requires commercial financing providers to disclose an APR-equivalent for California businesses. Review the cost disclosure in your specific offer before accepting.

Both Stripe Capital and Shopify Capital repay as a percentage of daily platform payouts — so reducing processing volume automatically slows the daily repayment amount. The total balance owed does not decrease; only the collection pace extends. Your outstanding advance remains due in full regardless of revenue changes. Both platform agreements may contain provisions about maintaining your processing relationship during the advance term. Review your specific offer terms and merchant agreement for any event-of-default or acceleration clauses before reducing or migrating volume. Source: Stripe and Shopify published merchant financing agreements at stripe.com/capital and shopify.com/capital.

Typically, no — both Stripe Capital and Shopify Capital extend one advance at a time per merchant account. A new offer generally becomes available after the prior advance is substantially or fully repaid, based on continued platform sales activity. Some merchants may receive a top-up offer when a current advance is partially repaid, but this is at Stripe's or Shopify's discretion and not a guaranteed product feature. Verify current multi-advance eligibility in your Stripe Dashboard or Shopify Admin under the Capital section, as policies can change.

Both programs require active, eligible payment processing on their respective platforms as the baseline — Stripe Capital requires sufficient Stripe processing history; Shopify Capital requires an active Shopify Payments account in an eligible country. Beyond platform eligibility, both exclude businesses in restricted categories defined by their terms of service (which include many regulated industries, high-risk business types, and activities prohibited under platform policies). The most common reason for ineligibility is insufficient processing volume or tenure on the platform — merchants with thin payment history or very new accounts typically do not receive pre-screened offers. Review Stripe's and Shopify's restricted business lists in their respective terms of service.

Stripe Capital and Shopify Capital are revenue-based advances, not revolving credit lines. Key differences: (1) Underwriting uses platform sales data instead of tax returns, bank statements, or a formal credit application — no business credit score check in most cases. (2) Repayment is a variable percentage of daily revenue, not a fixed monthly payment. (3) Cost is a flat factor-rate fee, not an interest rate — effective APR varies with how quickly the advance is repaid. (4) You cannot draw on demand; new advances require a new platform-generated offer. A traditional business line of credit offers a revolving draw-and-repay structure, interest accrues only on drawn balances, and utilization is typically reported to business credit bureaus. Source: CFPB small-business lending research at consumerfinance.gov.