Retail

In the News: Shopify Capital Reports Positive Q1 Update

Funding company Shopify Capital just released details from its Q1 2017 earnings call, which many are speculating will lead to a 25 percent return on investment (ROI).

Following a recent $561 million equity funding round, and with $18.6 million in merchant cash advance (MCA) and $11 million in new cash advances as of April 2017, the company is likely in a solid spot.

Through high-level subscription plans, Shopify is enabling merchants to continually grow with changing needs. The company is also pushing highly sought high-volume merchants onto its Shopify Payments offering.

Shopify tends to pay back its MCA receivables within seven to nine months. The potential for Shopify Capital to provide a 20 to 25 percent ROI is dependent upon its remittance rate, and the given time frame for MCA payback will likely be a determining factor.

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