If you’re a small business owner, you know that inventory is one of the most important factors in building a successful company. Brands that are just starting out can’t afford to disappoint customers with empty shelves, or waste money on overstocking. Businesses also need to consider new product development, which can help you distinguish your brand and appeal to a wider customer base.
Having reliable access to inventory does more for your business than just increasing sales—it’s also a crucial component of making a great first impression with new customers, building lasting relationships with returning shoppers, keeping best-selling items on the shelves, and expanding your product lines.
But keeping your store stocked requires a steady influx of cash, which can be especially challenging for small businesses. Shopify Capital was created to bridge the gap between small businesses and the funding they need to succeed, offering innovative financing solutions to help founders find their footing.
If eligible, your application for funding through Shopify Capital may be approved in as little as two days. In addition, unlike traditional loans which require larger periodic payments and the pressure of meeting these, repayment is based on a percentage of your daily sales. You can use funding through Shopify Capital to order the inventory you need—even before you’ve repaid your loan—which can be especially helpful as you ramp up for key sales periods like the holiday season.
To give you a better idea of how Shopify Capital works, let’s explore how three different businesses used Shopify Capital funding to expand inventory and grow their brands.
The Public Pet paves the road to success
Jordan Lee founded his company, the Public Pet, to create a community for animal lovers in Honolulu, Hawaii. But as the pet store owner planned to make his dream business a reality, he faced obstacles that prevented him from securing the funds he needed to grow his business. Realizing that he needed a more flexible financing solution to support his growing company, he turned to Shopify Capital.
Keeping products on the shelves was one of the Public Pet’s biggest challenges from the start. Jordan constantly had to purchase more stock to keep up with rapid inventory demand. He quickly identified that securing enough cash to keep inventory coming in was his most pressing business need. Jordan used his first loan from Shopify Capital to expand his inventory, and also purchase extra stock ahead of time to keep up with high demand.
“Shopify Capital has made it easy to take advantage of more opportunities. Funding allowed me to grow my inventory, expand my team, and improve my retail store.”
Once he had the inventory that kept customers rushing back to the Public Pet, Jordan could focus on appealing to new customers and providing the one-of-a-kind community experience that matched his vision for his business.
&Collar suits up
Apparel brand &Collar partnered with Shopify in 2017, with the goal of claiming the luxury-meets-comfort space at an affordable price. Six years later, they were doing so well that they upgraded to Shopify to launch new product lines, growing sales by an average of 3,144% year-over-year. As the company’s growth burst at the seams, so did their inventory needs. So, &Collar sought funding through Shopify Capital to sell their clothes wholesale.
&Collar grew sales by an average of 3,144% year-over-year with Shopify Capital.
To grow their business on a global scale, &Collar used Shopify Capital funds to:
- Go wholesale: In 2020, &Collar launched a wholesale option using the B2B/WholeSale solution, a third-party app that seamlessly integrates with Shopify.
- Offer customized clothing: In 2022, the company launched a storefront for their new sub-brand, Flight, created to meet inventory needs for airline personnel with custom epaulets and double-breasted pockets.
- Expand internationally: In 2023, &Collar leveraged Shopify Markets to take comfortable menswear to countries outside the United States while keeping overhead costs down.
“Candidly speaking, if we hadn’t had Shopify Capital as an option for funding, we would be two, three, or maybe four years behind where we are today,” says Ben Perkins, CEO and founder of &Collar. “We wouldn’t have been able to keep up with demand, both from an inventory perspective and then finding new eyeballs.”
Hell Babes kicks it into high gear
Jessica Wise started her lifestyle brand Hell Babes with a dream of empowering women motorcyclists. But after initially relying on credit cards to fuel her company’s growth, she realized she needed a more manageable lending option to support her business.
Jessica was intrigued when Shopify Capital offered an alternative to the vicious cycle of high interest rates, which allowed her to focus on growing her business faster and more sustainably. And unlike using more traditional funding options, Jessica was able to make payments on her loan through Shopify Capital from small percentages of her daily sales, easing the financial burden she’d felt from depending on credit cards.
“Shopify Capital has been a game-changer for us. It’s given us the funding we need to stock up on inventory and grow rapidly."
Shopify Capital offered several opportunities that acted as a lifeline for Hell Babes. Through Shopify Capital, Jessica was able to secure eight rounds of funding to support her company’s rapid growth. This helped her double sales through ad spends and get the cash flow she needed to invest in inventory only two days or three days after applying for funding.
Stay stocked up with Shopify Capital
Getting the funding you need to keep items on the shelves and customers coming back isn’t always easy with a traditional bank loan. Fast, flexible funding solutions through Shopify Capital are designed to help companies thrive by equipping brands with funding to use how they need it, when they need it. Shopify Capital helps growing businesses like yours invest your way, from stocking up on bestsellers to investing in marketing campaigns to hiring employees that fit your team best.
*Shopify Capital loans must be paid in full within 18 months, and two minimum payments apply within the first two 6 month periods.
Available in select countries. Offers to apply do not guarantee financing. All funding through Shopify Capital is issued by WebBank in the United States.
