Where Should You Seek Funding First?

We understand the difficulties small businesses face when seeking funding. That’s why we’re introducing Shop Circle Capital¹, a revenue-based solution designed to accelerate growth with flexible and accessible funding. Revenue-based funding can have a huge impact on long-term success, since entrepreneurs can use their funds for expanding their business. Let’s see how we simplify the process of requesting funds required to operate a Shopify business.

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Understanding How Shop Circle Capital Works

Revenue-based funding offers businesses upfront capital, which is then paid through a percentage of their future earnings. Companies access and return their advances from a specific percentage of their revenue, either monthly or even daily. Payments are flexible based on the business’s financial performance. On days with higher revenue, a business makes larger payments. Conversely, on days when it earns less, the payments decrease, extending the time for payment. One of the perks of Shop Circle Capital is that funding eligibility is based on your financial history, not your business plan or pitch deck. The process usually requires minimal paperwork. Funding providers integrate with your payment systems to forecast your revenue, allowing for faster funding decisions—sometimes within days. It’s also possible that the funds from the financier integrate smoothly with your payment provider, allowing for a seamless partnership. In some cases, your payment provider works in partnership with a funding provider to allow for a more seamless integration.

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Funding Process 

1. Apply for Funding

• Integrate your payment systems to assess your eligibility for funding.

2. Select an Offer: Once approved, you'll receive multiple offers with varying payment terms. For example, you could receive an offer with:

• Funding amount + Fixed Fee: $50,000
• Daily revenue-share: 20%
• Average daily revenue: $1000
• Estimated payment period: 8-9 months

3. Pay the Advance: Your daily payments will be a percentage of your daily revenue.

How Much Funding Can You Obtain?

Funding providers evaluate your recurring revenue to determine your credit amount. Average amounts range from 1 - 2 times your monthly revenue.

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Examples of Shop Circle Capital Calculation

Suppose you receive $50,000 and agree to pay 20% of your daily sales. Your payments might look like:

• Day 1: $168 (based on $840 sales)
• Day 2: $224 (based on $1,120 sales)
• Day 3: $150 (based on $750 sales)

The payments adjust based on your revenue, making it easier to manage the overall cost of funds.

How is Shop Circle Capital different from traditional sources of funding?

• Payments: Shop Circle Capital is not a loan, it is a revenue based finance product which has flexible payments tied to daily revenue. Bank loans, in contrast, often require fixed monthly payments.
• Risk: No personal assets  are usually needed for revenue-based finance. However, a performance guarantee is required to be provided by business owners.
• Approval Time: Shop Circle Capital often offers quicker approvals with less paperwork, focusing on your sales performance rather than financial history.
• Fees: Traditional loans have interest rates, while Shop Circle Capital typically comes with a flat fee, which is paid as a percentage of future earnings.
• Use of Funds: Shop Circle Capital offers more freedom in how you can use the funds compared to some traditional bank loans.

Benefits of Shop Circle Capital

• Ownership Preserved: Entrepreneurs keep full ownership, avoiding the dilution of equity that comes with other financing options.
• We look at your transactions data: We simply calculate your eligibility for funding based on your store’s performance.
• Payment Adaptability: Payments adjust with business revenue, offering flexibility during slow months and higher payments during high-revenue periods.
• Rapid Funding: Funds are often available within 24 hours², as opposed to the lengthy processes which can be involved in securing Venture Capital or bank loans.

Who Stands to Gain from Shop Circle Capital?

Businesses of different sizes can apply for funding to drive more growth.

• Businesses Looking to Boost Cashflow: Whether it is for launching new products, exploring other markets, or growing your team, you have endless possibilities in how you use the funds.
• E-commerce Ventures: These businesses can readily use this funding for quick investments in marketing or inventory, thanks to easily projectable online sales data.
• Seasonal Businesses: The performance-based nature of this financing suits businesses with seasonal peaks, enabling them to prepare for high-demand periods.
• SaaS and Subscription Models: Businesses with predictable Monthly Recurring Revenue (MRR), like SaaS and subscription services, can manage their payments effectively given their stable income streams.

Is Shop Circle Capital Right for You?

If you’re looking to maintain control over your business and are confident in your revenue-generating plans, revenue-based financing can be an effective way to fuel growth. The payment flexibility based on daily revenue ensures that you can manage costs even during lean months. As part of a comprehensive funding strategy, it offers a solid option for those keen to preserve equity and grow quickly.

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1. For UK Business: This product is provided by Liberis Limited, Scale Space Building, 58 Wood Lane London, W12 7RZ (company number: 05654231). Liberis’ Revenue Based Finance is a form of receivables finance not a loan. Liberis is not authorised or regulated by the Financial Conduct Authority and the Financial Ombudsman Service will not be able to consider a complaint about Liberis. Amounts advanced are subject to status and our underwriting process before any offer can be made.
2. In February 2024, 59% of approved applications received funding within 1 working day.