Shopify Capital and Kickfurther are both online platforms that aim to provide funding for eCommerce businesses, each with its own benefits.
Offered by the eCommerce platform Shopify, Shopify Capital provides funding to certain eligible sellers and takes repayment from daily sales on the platform. Shopify Capital is an extension of Shopify eCommerce specifically to help sellers get funding. Shopify is most well-known as being an eCommerce platform for buying and selling products.
Kickfurther, on the other hand, is a more sophisticated platform that helps sellers get funding for inventory – regardless of the platform they sell on. Up to 30% cheaper than other options, Kickfurther is committed to the success of our entrepreneur heroes.
While Shopify Capital is limited only to sellers on Shopify, Kickfurther and Shopify Capital can both free up the working capital needed to grow your business.
Interested in obtaining funding from Shopify Capital or Kickfurther? Here’s what you should know.
Overview: Kickfurther Vs. Shopify Capital
Shopify is one of the leading e-commerce platforms in the world, servicing over 4 million businesses and reaching a consumer base of over 300 million customers. For certain eligible sellers, Shopify Capital is a program offered by the platform that can provide up to $1 million in funding in the form of loans or cash advances.
Kickfurther is another funding platform designed to aid e-commerce businesses, offering inventory on consignment, which frees up the working capital that can be focused on other areas of their business. Kickfurther is extremely unique in the sense that businesses can connect with a community of backers to receive inventory funding without giving up equity or taking on debt. By creating a business profile that showcases the brand and its dreams, connections can be formed and working capital can flow by parties that believe in the same mission.
Shopify Capital:
What is Shopify Capital?
Shopify Capital is a financing program offered by Shopify, a popular e-commerce platform that allows merchants to sell their products online. The Shopify Capital program offers certain eligible sellers on the platform the necessary funds to grow their businesses, by offering loans and cash advances. These loans and cash advances range from as low as $200 up to $1 million.
How does Shopify Capital work?
Shopify Capital is invite-only and exclusively offered for sellers on the platform, meaning you won’t be eligible unless you receive an offer from Shopify. For those sellers who do receive an offer and take advantage of the loans offered, once the funds are disbursed to your bank account (typically within a few business days), repayment then comes from future sales also known as a remittance rate.
On average, the remittance rate is 10% and will vary based on the loan terms, which will then be withheld from daily sales on the platform. For Shopify Capital loans the loan term is 12 months, with milestone payments every 60 days to ensure you are on track for making repayments. Whereas cash advances do not have a set cut-off and will simply be repaid using remittance from daily sales.
Benefits of using Shopify Capital
Perhaps the main advantage of using Shopify Capital, is that the financing program is derived from the eCommerce platform sellers already use to sell their products. Since most of the necessary information has already been provided and available on the platform, there is little additional information that needs to be provided during the application process, and tracking repayment progress is available on Shopify’s dashboard. Shopify Capital also offers a fairly high borrowing limit in comparison to traditional e-commerce business lenders, with loans ranging from $200 to $1 million.
How to apply for Shopify Capital
Since the Shopify Capital program is invite-only, you cannot directly apply for a business loan or cash advance. Shopify will determine eligibility and send an invite to certain sellers once they become eligible. If offered a loan, you can view funding options through your Shopify Dashboard. Review the offer or merchant cash advance and accept to start the underwriting process. If approved by Shopify Capital, you can then formally accept the offer, and funds can be disbursed within a few business days. It’s important to know that once a loan is offered and selected, there may be additional information you will need to provide to the underwriting team that could potentially disqualify you for the loan.
Kickfurther:
What is Kickfurther?
Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.
Why Kickfurther?
- No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.
- Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.
- Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.
Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.
Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. By funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc.
How to apply for Kickfurther
Applying for funding through Kickfurther is simple and can be done by completing these three easy steps. Through Kickfurther’s website, you can create a free business account. Once your account is set up, you will then be prompted to complete the online application. After your application is submitted, you will then be connected with an account rep and can view your potential funding offer.
The main differences between Kickfurther and Shopify Capital
Kickfurther and Shopify Capital are two different funding options for small businesses, and there are several differences between the two. Here are some of the main differences:
- Eligibility: Shopify Capital is only available to merchants who use Shopify’s platform to run their online stores. Kickfurther, on the other hand, is available to any small business that meets its eligibility criteria.
- Funding model: Shopify Capital provides financing in the form of loans and cash advances, whereas Kickfurther covers your inventory on consignment. Both models utilize future sales of products for repayment.
- Repayment terms: Shopify Capital loan terms are based on 12-month periods, with an average of 10% deducted from your daily sales on the platform. With Kickfurther, there is no immediate or daily repayment, allowing you to control your repayment schedule.
Success stories of businesses using Kickfurther
Join the 800+ businesses that have had success utilizing inventory funding through Kickfiurther! Here are just a few examples of companies that have success on the platform:
- Heroclip: Raising $147,400 through Kickfurther, Heroclip was able to add distribution partners, expand distribution, and grow sales revenue due to increased inventory.
- Spongelle: Raising over $1 million, Kickfurther gave Spongelle the ability to fund large orders and provided inventory for spikes in sales, freeing up the capital to accept all desirable new orders and expand product lines.
- BigStock, Inc.: Raising over $1 million, BigStock, Inc. was able to alleviate cash flow pinches and meet increased demand due to maintaining sufficient inventory levels.
Get funded with Kickfurther
Interested in getting funded at Kickfurther? Here are 3 easy steps to get started:
- #1. Create a free business account
- #2. Complete the online application
- #3. Review a potential deal with one of our account reps & get funded in minutes
