The Canadian e-commerce company Shopify has announced that it wants to help SMEs trade things on the web by launching starter loans.
Shopify will provide service through its financing unit Shopify Capital, according to Forbes. Through the new service, budding online merchants can get an initial loan of $200 when they sign up to Shopify and link their bank accounts.
The idea is that those extra money can be leveraged to build an online brand through marketing or adding inventory.
New online merchants will not need to put up a personal guarantee for the loans or go through a credit check.
Once the money is in the companies’ accounts, they pay it back through a percentage of their sales.
The news comes after Shopify launched its Shopify Email service in November 2019, claiming it was “the first email product designed for e-commerce.”
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