Canada-based ecommerce platform Shopify has announced the introduction of a new business financing programme for the Australian market, offering up to AUD 2. 5 million in funds.

Business funding The funding will be repaid as a percentage of future sales and will benefit existing Shopify users who were previously declined loans by traditional bank businesses. As opposed to classic loans payable with interest, Shopify Capital repayments are designed with a per-sale perspective, with remittance paid by businesses as a percentage of daily takings. The company mentioned that it will not use personal credit checks or take equity in the businesses it decides to support, instead relying on in-house review of business data to further approve funding applications.

Post-pandemic measures Since its global debut in 2016, Shopify Capital has lent approximately AUD 5. 5 billion, of which over AUD 781 million outstanding at the end of June 2022. The ecommerce platform’s Q2 2022 statistics show that merchants in the US, Canada, and the UK received more than AUD 500 million over the period, without including Australia, which Shopify Capital entered recently.

However, the announcement of the boosted financial offerings comes shortly after Shopify declared it will downsize its global workforce by 10%, as a response to lower-than-expected ecommerce sales once the COVID-19 lockdowns were lifted. Even though ecommerce was the undisputed winner of the pandemic, many online platforms struggled to keep up with the ever-growing demands, having to invest most of their profits into new logistics lines, including distribution and delivery. Shopify’s tools help merchants from across the world establish and grow their online channels, boosting revenues and increasing visibility but even so, customers are no longer eager to buy.

While people were forced to take paycheck cuts and even lose their jobs during the COVID-19 pandemic, they remain rigid with their budgets, planning ahead and even eliminating unnecessary spending. The ongoing trend of global saving will likely continue throughout 2022 and even in 2023, as we’re entering another recession, boosted by the pandemic and the political tensions in Europe. .