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Shopify (NYSE:SHOP), a cloud-based, multi-channel commerce platform, announced September 20 that it has partnered with trade finance and insurance solutions agency Export Development Canada (EDC) to insure the merchant cash advances offered by Shopify Capital.
Shopify Capital is the new service the ecommerce platform launched in April this year to help small business owners and entrepreneurs secure financing and accelerate their business growth. The service seeks to tailor cash advances to each merchant’s needs, based on data processed through the Shopify platform, in order to help them grow their business.
“For many merchants, securing capital is a frustrating and time-consuming process,” said Saad Atieque, Product Manager at Shopify in an earlier press release announcing the launch of Shopify Capital. “With Shopify Capital, we’re giving entrepreneurs a simple, fast, and convenient way to secure financing to invest in their business. Similar to our payments and shipping solutions, Shopify Capital represents one more way Shopify can help entrepreneurs strengthen their business operations.”
As part of the new partnership, EDC will insure the small business, merchant cash advances offered by the service. Shopify claims obtaining this financing is designed to be as simple as a few clicks, with money in the merchant’s account within a few days of acceptance. As of June 30, the company said it had advanced over $5 million to participating merchants since the program’s inception.
“Our partnership with EDC supports the continued growth of Shopify Capital,” stated Brett O’Grady, Head of Treasury and Risk for Shopify.
Image: Shopify
