When we think of Shopify, there are a few things that come to mind – eCommerce giant, platform where we design beautiful sites, and credit card provider. Wait. What? That’s right! Shopify has revealed their very own credit card, just for business owners. This may sound intimidating, which is why Fyresite has broken down everything you need to know about Shopify Credit and how credit can help your business.
How Can a Credit Card Help My Business?
Just like how a personal credit card can help your personal credit score increase, a business credit card can help your business credit score increase.
However, 45% of small business owners don’t know about business credit, 72% don’t know where they can find their business credit score, and 82% don’t know how to interpret this score, according to the U.S. Small Business Administration.
When you have a higher business credit score, it allows your business to be more likely to receive a loan from a bank, and lower business insurance rates. It also can impress investors, who want an idea of how fiscally responsible you are.
Perhaps the biggest benefit is that it keeps your personal finances separate. Keeping these financial streams separate allows you to have a clearer image of business finances, reduces the likelihood of personal legal repercussions, and makes bookkeeping easier.
Unlike personal credit scores, business credit scores are ranked from 0-100, where 0-49 is high risk of missed payment, 50-79 is medium risk, and 80-100 is low risk. There are credit bureaus that have options for you to check your small business credit score, allowing you to make informed decisions about your business finances.
Fast Facts About Shopify’s Credit Card
Now that you know why business credit is so important, let’s go over some fast facts about Shopify’s credit card.
Important note: Once you apply to Shopify Credit, you will no longer be eligible for Shopify Capital. If you already have applied to Shopify Capital, you are no longer eligible for Shopify Credit.
Who is Eligible For This Card?
Eligibility is determined by business performance, not your credit score. Checking eligibility does not impact your credit.
The amount of credit you receive will vary depending on your sales performance, and will grow with your business.
How to Pay for This Card
This card is a pay-in-full business card.
This means that if there is any outstanding balance on the card, it will be debited on each monthly payment date from your designated bank or Shopify Balance Account.
If your account can’t be credited, the card will be locked and you can’t make any purchases until your balance is paid in full.
You will be given 25 days after the closing of your monthly cycle to pay the card in full without interest.
What Can I Use This Card For?
This card is for business expenses only. This includes marketing, fulfillment, and wholesale.
Marketing business expenses include advertising costs, such as running ads on Google, Meta, TikTok, Pinterest, Audiences, and with Shopify Email.
Fulfillment business expenses refers to shipping fulfillment. You can use this card on Shopify Shipping, the Shopify Fulfillment Network, Flexport, USPS, and UPS expenses.
Wholesale business expenses allow you to restock and refresh your products through Faire, with more options coming soon.
Miscellaneous Information About Shopify Credit
Shopify Credit offers cashback savings, with 3% cashback on your top eligible spend category and 1% on others. Eligible spend categories include marketing, fulfillment, and wholesale. Cashback comes in the form of a statement credit.
This card has no fees and no interest.
Shopify Credit gives you the option to give your team cards. These cards will be under the same credit line and cost nothing additional.
You will receive a virtual card right away, and a physical card will be sent to you.
This card is a Visa card, so you can use this card to pay wherever Visa cards are accepted. This also means you get access to Visa’s perks, including extended purchase protection, zero liability, and lost or stolen card replacement.