Shopify Originated $226.9M in MCAs and Business Loans in Q4, Close to $800M For the Year
Shopify released its 2020 fourth-quarter earnings on Wednesday, revealing its financial arm’s latest stats. Shopify Capital originated $226.9 million in merchant cash advances and loans to businesses in the U.S., Canada, and the U.K.
“Products like Shopify Capital are increasingly sought out by entrepreneurs and small businesses that face unnecessary barriers to access from traditional banks,” Shopify President Harley Finkelstein said in the quarterly earnings call. “Merchant empathy runs deep at Shopify. When traditional businesses were turned away, for the perceived high risk, we financed a record number of merchants when they needed it most.”
“We also introduced Shopify Capital to Canada and to the U.K. in 2020,” Finkelstein said. “To expand where we could help merchants.”
Shopify Capital still lagged behind rival OnDeck in origination volume, who reported a little over $1B in originations for the year.Last modified: February 17, 2021
Kevin Travers was a Reporter at deBanked.