Shopify Capital loans and repayment for merchants in France

Shopify Capital loans are available to merchants in France. You receive the loan as a lump sum of money called the loan amount, in exchange for a fixed borrowing cost. The fixed borrowing cost is specified as your cost of funds in your loan agreement.

You repay the total payment amount, which covers the loan amount and borrowing cost, through a daily payment percentage based on your daily sales.

Repayment continues until you've paid the total payment amount in full, but you must pay it off within a maximum term of 18 months. You must also meet two minimum payments within the first two 6-month periods. If your sales don't meet the minimum payment, then you might need to make a manual payment to meet your minimum.

The actual duration you take to pay back your loan might be less than 18 months based on your sales. The specific terms, such as the total payment amount and daily payment percentage, are determined based on your risk profile.

The Shopify Capital loan agreement includes a security interest to business assets known as collateral, if loan obligations aren't met. This means that your loan is a secured loan.

Business registration requirements in France

To apply for Shopify Capital in France, your business must be registered with a SIRET (Système d'Identification du Répertoire des Établissements) number. The Individual business type isn't supported for Shopify Capital in France. If your business is currently registered as an Individual, then you must update your business type to Sole Proprietor or another registered business type and provide a valid SIRET number before you can apply.

Apply for a Shopify Capital loan in France

Eligible merchants in France can request a loan on the Finance page of the Shopify admin. Funding isn't guaranteed, and an offer to apply might expire without notice or the funding amount might change.

You can customize the funding amount up to the maximum amount available. The funding terms differ based on factors such as the loan amount, the total payment amount, and the daily repayment percentage. The terms adjust automatically based on the Shopify Capital amount but can't be customized independently. After you apply for funding, you can't change the offer amount.

After you apply for a loan, your application for funding is usually reviewed within 1-3 business days, although it might take longer. If your application is approved, then the loan amount is deposited into your business bank account. After the loan disbursement, a daily repayment percentage based on your store's daily sales applies starting within two business days.

Steps:

1. From your Shopify admin, go to Finance.

2. In the Accounts section, click Capital.

3. In the Funding offer section, review the offer. To request a lower amount, enter it in the Custom amount field.

4. Review the terms and details for your chosen amount, and then click Apply now.

5. Verify your identity and business details for Shopify Capital. As part of identity verification, you need to upload a document that includes your place of birth. Accepted documents include a national identity card, passport, driver's license, or birth certificate.

6. In the Application section, review the terms and conditions of your loan agreement, and then click Submit application.

After you submit your application, you can monitor its progress from the Application page.

Requesting another loan with Shopify Capital in France

You might qualify for a second loan before you've repaid an existing loan in full. If you're eligible for a second loan, then a new funding offer displays in your Shopify admin. If you're approved for a second loan, then you receive the funds immediately, but your repayments for the second loan don't begin until you've repaid your first loan.

View your Shopify Capital loan payment details in France

After you receive your loan, you can track the remaining balance of your total payment amount from the Finance page of your Shopify admin under Accounts. From the Capital page, you can view the following repayment information:

• The current balance of the total payment amount
• The amount of the total payment amount that has been repaid
• Payment transaction history

In the All transactions report, the Total sales column lists each day's sales revenue, and the Amount column lists how much of that revenue goes toward your Shopify Capital repayment.

Repay the balance of your Shopify Capital loan in France

You can manually pay back any amount over €1 EUR towards your loan, or clear up to the entire outstanding balance. The payment is deducted from the same business bank account linked to your Shopify Payments account.

Steps:

1. From your Shopify admin, go to Finance.

2. In the Accounts section, click Capital.

3. Click Make a payment.

4. Choose the amount that you want to pay:

   • To make a manual payment, enter the amount in the Custom amount field.
   • To pay the full amount, click Full remaining balance.

5. Click Next step, and then review the amount to be repaid.

6. Click Make a payment.

You receive a confirmation email when your repayment is complete.

Calculate your daily loan repayment

Your daily payment is based on a percentage of all sales associated with your Shopify account and the services provided under your account.

This includes sales on your Shopify online store, at your retail locations, from any sales channels, and through any apps, such as Shopify Marketplace Connect.

Daily sales revenue is calculated using the final total transaction amount for each day. This calculation includes all orders marked as paid on that day, regardless of the order source, the payment processing method, or whether the order was later refunded or cancelled. The total transaction amount also includes all charges, such as shipping and handling, as well as any applicable sales taxes, such as duty and value-added taxes. The daily payment percentage is applied to the total transaction amount.

Test orders that you place when Shopify Payments is in test mode aren't included in the repayment calculation. If you place an order without test mode activated, then the order is included in your store's sales revenue for the day's repayment calculation.

No payment is taken on days when there are no sales associated with your Shopify account or the services provided under your account.

Minimum payments with Shopify Capital in France

New Shopify Capital loans include two minimum payment thresholds. These thresholds are outlined in the Shopify Capital loan agreement terms. Your progress is evaluated at the 6-month and 12-month marks within the loan term to determine if you meet these minimum payment thresholds. These evaluations help confirm that you're on track with your loan repayment.

The minimum repayments are 30% of the total loan by the 6-month mark and 60% of the total payment amount by the 12-month mark. These payments are calculated based on a percentage of your daily sales, known as the daily payment percentage.

If you don't meet the minimum payment threshold during these evaluation points, then you might be in default under your loan agreement. Review your loan agreement for more details on the actions that might be taken if you miss your minimum payments.

Loan repayment time frame in France

The maximum term for new Shopify Capital loans is 18 months, within which the total payment amount must be fully received. Shopify Capital loans have a repayment structure based on a percentage of your daily sales, so the actual duration needed to repay the loan might be less than 18 months.

If your sales slow down so that you aren't on track to meet the maximum term of 18 months, then you might be in default under your loan agreement. It's essential to monitor your loan payment balance and make a manual payment to avoid defaulting on your agreement.

Failed Shopify Capital loan payments in France

If your debit payments are paused or fail, then you might be in default of your loan agreement. If a daily Shopify Capital repayment fails, then the payment isn't debited again. However, your next day's loan repayment, that's based on the daily payment percentage calculated from your store's daily sales revenue, is debited as usual.

To address the failed payment, you can make a manual payment. This lets you proactively address the missed payment and ensure your loan repayments remain on track.

Secure your Shopify Capital account

If your Shopify account has been compromised and you use Shopify Capital loans, then you must take immediate action to protect your finances and report fraudulent activity.

Contact Shopify Support immediately if you identify unauthorized Shopify Capital loan activity. Repayments begin as soon as funding is disbursed, so time is critical. You can’t report Shopify Capital fraud in your Shopify admin.

Steps:

1. Review your loan payment details for unauthorized funding.
2. If you identify unauthorized loans or changes to your repayment settings, then contact Shopify Support immediately.
3. Verify that the bank account connected to your Shopify Capital account hasn't been changed without authorization. Shopify Capital loan repayments are debited from any of the following accounts:
   • The bank account connected to Shopify Payments.
   • Your Shopify Balance account if it's set as your payout account.
   • The external bank account that you set up in your Shopify Capital settings (for non-Shopify Payments users).

Examples of fraudulent activity

The following types of activity might indicate that your Shopify Capital account has been compromised:

• Unauthorized funding: Loan funds requested or accepted without your knowledge.
• Unauthorized repayment setting changes: Unauthorized changes to your repayment precentage rate or repayments settings.
• Unauthorized bank account changes: Unauthorized changes to the bank account used for Shopify Capital loan debits.