Shopify loans in the UK: how Shopify Capital works and how it compares

Shopify doesn't offer loans in the UK. Its UK funding, Shopify Capital, is a merchant cash advance from its partner YouLend, and only stores that Shopify invites can apply. We checked Shopify's UK pages on 12 October 2026. Here's what an offer really costs, how it compares with a Flexi-Loan and when it's the better choice.

In Shopify's own UK example, you get £5,000 and pay back £5,650 through 10% of your daily sales. The £650 fee is fixed, so it stays the same however quickly you pay. (Source: Shopify Help Center, "Shopify Capital merchant cash advance for merchants in the United Kingdom", checked 12 October 2026.)

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Does Shopify offer loans in the UK?

No. In the UK, Shopify Capital offers merchant cash advances, not loans. Shopify's partner YouLend issues every UK advance, and we checked this on Shopify's UK help pages on 12 October 2026.

Legally, a merchant cash advance is a sale of part of your future sales. YouLend pays you a lump sum now and buys a share of the sales your store makes next. So there's no interest rate and no fixed repayment date. Shopify's term loans, and the newer products you may read about on US sites, aren't offered to UK stores.

Source: Shopify Help Center, "Eligibility, funding options, and application process", checked 12 October 2026.

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How a Shopify Capital merchant cash advance works

Shopify pays you a lump sum and takes a fixed percentage of your store's daily sales until a set total is paid. There's no deadline: you pay more on busy days, less on quiet ones and nothing on days without sales.

The details that matter, all from Shopify's UK help page:

• The percentage comes off your gross sales. That includes shipping, VAT and orders you later refund or cancel, so it's a share of takings, not of profit.
• Sales means everything linked to your Shopify account: your online store, Shopify POS in a shop, other sales channels and apps such as Shopify Marketplace Connect.
• You can pay off part or all of the balance at any time, but the total you owe doesn't go down.
• You may get an offer for a second advance before you've paid off the first.
• If your payments are paused or fail, Shopify says you may be in default of the agreement.

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Who can get Shopify Capital in the UK?

You can't apply until Shopify offers. Shopify reviews every store automatically and, if yours qualifies, emails you and shows offers on the Finance page of your admin. No offer means your store isn't eligible yet.

Shopify says it looks at:

• How long you've traded on Shopify. Your store needs to have been on a plan and operating for at least three months.
• Your sales on Shopify. These drive whether you get an offer and how big it is.
• Where you're based. A UK store needs to sell in GBP, have a UK bank account and be run from the UK.
• How you take payments. You need Shopify Payments or an approved provider.
• Your track record. Chargebacks, disputes, returns and failed payments to Shopify all count.

Shopify Capital doesn't support businesses set up as trusts or partnerships. Once you pick an offer, Shopify reviews the request within one to three business days. If it's approved, the money can arrive in as quick as two business days. (Source: Shopify Help Center and shopify.com/uk/capital, checked 12 October 2026.)

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What does Shopify Capital cost compared with a Flexi-Loan?

Shopify charges a fixed fee, while a Flexi-Loan charges interest only for the days you borrow. That makes Shopify Capital cheaper if you'd take a loan for most of a year, and a Flexi-Loan cheaper if you'd clear it within a few months, weeks or days.

Shopify's UK example is a £650 fee on £5,000, which is 13% of the advance. Your own fee will depend on your store. To compare like for like, here's £10,000 at that same 13% next to an iwoca Flexi-Loan at our representative rate of 3.33% per 30 days.

At these rates, a Flexi-Loan cleared within about four months costs less than the £1,300 fee. Kept longer, it costs more. The Shopify fee doesn't change with time, so a slow-selling month makes the advance last longer but not cost more. Paying it off early doesn't save you anything either.

How long an advance takes to clear depends on your sales. On Shopify's example, a store taking £500 a day would pay £50 a day and clear £5,650 in about 113 selling days.

There are no fees on 12-month loans, and you can repay early at any time with no fee. Your rate depends on your business, so try your own numbers in our business loan calculator.

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Shopify Capital vs a Flexi-Loan at a glance

The biggest differences are how you get one and how you repay it. Shopify Capital is offer-only and comes out of your sales. A Flexi-Loan is open to apply for and repaid by set monthly amounts, with a director's personal guarantee.

Shopify facts from Shopify Help Center and shopify.com/uk/capital, checked 12 October 2026. Shopify's UK Capital page also shows US loan small print, so check your own offer and agreement.

iwoca has funded 100,000+ UK businesses and provided £5bn+ of funding. A Flexi-Loan is a commitment like any loan, so borrow only what your company can repay from its sales.

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When Shopify Capital is the better fit

If you have an offer, your sales swing a lot and you'd rather not have fixed monthly repayments, Shopify Capital can be the better fit. Its fixed fee can also work out cheaper than a loan you'd keep for a year.

Shopify Capital is likely to suit you if:

• You already have an offer and the fee is small next to the margin on the stock it buys.
• Your sales are seasonal, and you want repayments that fall when sales fall.
• You'd keep borrowed money for many months, so a fixed fee beats paying interest over time.
• You'd prefer not to give a personal guarantee, and your YouLend agreement confirms none is needed.

Look at other options if:

• Shopify hasn't made you an offer, or the offer is too small.
• Your margins are thin. A share of gross sales, including VAT and refunded orders, can take a large part of the profit on every sale.
• You expect to pay back quickly. The fee stays the same, so the cost per month goes up.
• You'd like to keep each round separate. Renewing early keeps the fee coming out of your sales for longer.

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What if most of your sales aren't on Shopify?

Shopify only counts sales that run through your Shopify account. If a lot of your revenue comes from elsewhere, an offer may be smaller than your business could support, and a lender that looks at the whole business may suit you better.

Sales on Amazon through Shopify Marketplace Connect and in-person sales through Shopify POS do count. Wholesale orders you invoice outside Shopify, a marketplace you run separately or a shop on another till system don't. If you also sell on Amazon, our guide to Amazon seller finance covers that side.

A Flexi-Loan isn't tied to one sales platform.

Chris Billingham, founder of Muscle Squad, sells high-value fitness equipment online and borrows from us in step with his sales cycle: "We go through waves of borrowing a significant amount and paying back a significant amount. You need the conviction that a good period is only around the corner."

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Other ways to fund a Shopify store

If Shopify hasn't made you an offer, you can still fund stock or marketing. Other merchant cash advance providers lend against card takings, invoice finance releases cash from B2B invoices, and a business loan works across all your sales.

• Another merchant cash advance. Providers outside Shopify base the advance on your card takings, so it can include sales that Shopify doesn't count. The same fixed-fee maths applies.
• Invoice finance. If you sell wholesale, invoice finance lets you borrow against invoices your customers haven't paid yet.
• A business loan. You repay a set amount each month, whatever your sales do that week.

For more options, see our guide to funding options for ecommerce businesses.

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Frequently asked questions

Does Shopify Capital need a personal guarantee?

Shopify's UK Capital page says there are "no guarantors" and "no personal liability" (checked 12 October 2026). Your agreement is with YouLend, so read it for any guarantee before you accept.

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Does Shopify Capital check my credit?

Shopify's UK Capital page says "No credit checks, no impact to your personal credit score". YouLend issues the advance, so ask it what checks it runs.

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Can I pay off Shopify Capital early?

Yes, you can pay off some or all of the balance at any time, but the fee doesn't go down. Shopify says the total isn't reduced when you pay the whole balance.

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What happens if my Shopify sales stop?

On days with no sales, Shopify takes nothing. But if your remittances are paused or fail, Shopify says you may be in default of the agreement.

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How quickly does iwoca make a decision?

A decision is made within 24 hours, but it might be longer depending on the complexity of the request. Applying is a soft check, so it won't affect your credit score.

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Does a Flexi-Loan need a personal guarantee?

Yes. Every new customer needs a personal guarantee from at least one director, though not every director has to sign.