Merchant Cash Advance for Ecommerce Businesses: Shopify, Stripe and Online Sales

Quick answer: can ecommerce businesses get a merchant cash advance?

Yes. Merchant cash advances and other forms of revenue-based finance are available to some ecommerce businesses, even if the business does not take payments through a physical card machine.

For an online business, funding can potentially be assessed using sales generated through:

• online payment processors
• ecommerce platforms
• payment gateways
• marketplaces
• subscription payments
• other digital sales channels.

The important point is that the finance provider needs to understand the revenue being generated and how the agreed collection or repayment mechanism will work.

Some ecommerce funding is deeply integrated into the payment platform itself.

For example, eligible UK businesses can currently access merchant cash advances through both Shopify Capital and Stripe Capital, with YouLend providing the underlying merchant cash advance in the UK.

Other businesses may obtain merchant finance independently of their existing ecommerce or payment provider.

Merchant Advice Service is an independent UK payments information and provider-matching service. We specialise in helping businesses understand how merchant finance interacts with online payment processing, including ecommerce platforms, payment processors, settlement, Merchant IDs and multiple sales channels.

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What is an ecommerce merchant cash advance?

A merchant cash advance commonly provides a business with an upfront amount in return for an agreed amount being collected from future sales.

For an ecommerce business, those sales do not necessarily need to come through a countertop card terminal.

They may be generated through an online store, payment processor or ecommerce platform.

A simplified arrangement could look like this:

• business receives: £30,000
• agreed total collection: £36,000
• collection percentage: 12% of defined online sales.

If eligible online sales are £50,000 during one month, a 12% collection would represent approximately:

£6,000.

If eligible sales fell to £25,000, the same percentage would represent approximately:

£3,000.

This is a simplified illustration. The actual funding structure, definition of sales, cost and collection method depend on the individual agreement.

For a more detailed explanation of factor rates, costs and sales-linked repayment structures, read our Merchant Cash Advance UK guide.

Do you need a card machine to get a merchant cash advance?

No.

The term “merchant cash advance” historically became closely associated with businesses taking large volumes of card-machine payments.

The market has developed considerably since then.

Modern ecommerce businesses can generate substantial, measurable revenue through online payment platforms, giving finance providers access to sales information that can potentially be used within underwriting and collection arrangements.

An online retailer, software company or other ecommerce business may therefore be considered for sales-based finance without operating a physical card terminal.

What matters is the finance provider's criteria and whether the business generates sufficient eligible revenue through supported sales channels.

How can an MCA provider see ecommerce sales?

The method varies between providers.

Sales data may potentially be obtained through:

• a payment processor
• an ecommerce platform
• a payment-service integration
• business bank account data
• Open Banking
• merchant statements
• other financial information supplied during underwriting.

Embedded finance can make this particularly straightforward because the platform offering the funding may already have access to a substantial amount of transaction history.

This can allow the provider to assess factors such as:

• sales volume
• sales consistency
• trading history
• order frequency
• refund behaviour
• chargebacks and disputes
• seasonality
• business growth.

Having visible sales data does not guarantee that finance will be offered or approved. 

Online businesses may have additional considerations around gateways, PSPs and settlement when selecting MCA funding. A broker or matching service can sometimes help narrow down providers that fit the existing payment setup. Read Merchant Cash Advance Broker vs Direct Provider.

Online merchants may receive funding offers directly through ecommerce platforms such as eBay, Amazon or Shopify. These can be convenient because the platform already holds sales data, but they should still be compared against the merchant’s wider revenue and funding options.

Read our guide to platform funding for eBay, Amazon and Shopify sellers.

Can Shopify businesses get a merchant cash advance?

Yes, eligible UK Shopify businesses can currently be offered a merchant cash advance through Shopify Capital.

Shopify currently provides its UK merchant cash advance product through YouLend using a receivables purchase agreement.

The business receives an agreed lump sum and remits an agreed percentage of daily sales until the defined total amount has been collected.

View Shopify's current UK Capital information.

Importantly, Shopify Capital is not automatically available to every Shopify store.

Eligibility is assessed by Shopify and can change over time.

How does Shopify Capital assess eligibility?

Shopify's current eligibility guidance says it considers a range of information about the business and its activity on the platform.

Factors currently listed include:

• sales performance
• sales volume
• frequency of sales days
• number of orders
• successfully shipped orders
• customer engagement
• length of time using Shopify
• payment history with Shopify
• returns
• chargebacks and disputes
• reserves
• payment provider and payout arrangements
• compliance with Shopify's terms.

Shopify states that eligibility and offer sizes are continually evaluated and that an invitation to view funding does not guarantee final approval.

View Shopify Capital's current eligibility guidance.

How are Shopify Capital MCA collections calculated in the UK?

This is an important distinction for ecommerce businesses using several payment methods.

Shopify currently says the agreed remittance percentage is applied to the gross daily sales associated with the Shopify account.

Its current UK guidance says this can include sales from:

• the Shopify online store
• retail locations
• sales channels
• apps connected to the Shopify account.

Shopify also states that its daily sales calculation can apply regardless of which payment-processing method was used for the order.

For a Shopify merchant, that means it is particularly important to understand exactly which sales form part of the remittance calculation rather than assuming the calculation is limited only to transactions processed through Shopify Payments.

What happens to Shopify refunds and cancelled orders?

This is another area where merchants should check the specific platform rules rather than making assumptions.

Shopify's current UK Capital guidance says completed orders are included within its daily sales calculation even where an order is later refunded or cancelled.

This makes the definition of gross daily sales important for ecommerce businesses with significant returns or cancellations.

Businesses should consider this carefully if they operate in sectors where customers frequently:

• return products
• cancel orders
• change bookings
• request refunds after payment.

The treatment used by other merchant cash advance providers may be different.

Can Stripe businesses get a merchant cash advance?

Yes. Stripe Capital currently provides eligible UK Stripe businesses with access to sales-based business financing.

Stripe's UK Capital programme is provided with its financial partner YouLend.

Stripe currently describes its finance as having a fixed fee with automatic payments calculated as a percentage of sales.

Eligibility can take account of information including payment-processing volume and the business's history on Stripe.

View Stripe Capital UK.

How does a Stripe merchant cash advance work?

For a merchant cash advance offered through Stripe Capital, the advance is linked closely to the business's Stripe payment activity.

Stripe's current documentation describes the MCA as a purchase of future receivables, with a defined percentage withheld from payment-processing volume.

Collections therefore vary with the amount being processed.

When sales are higher, more can be collected.

When processing volume is lower, the amount collected through the percentage-of-sales mechanism is lower.

View Stripe's current UK Capital documentation.

Shopify Capital vs Stripe Capital for ecommerce businesses

Both provide useful examples of how funding can now be embedded directly into ecommerce and payment platforms.

But merchants should not assume the two structures calculate sales in exactly the same way.

This is a high-level comparison of current publicly available information and not a comparison of individual finance offers.

Terms and eligibility can change and should always be checked directly with the provider.

Do you have to use Shopify Capital or Stripe Capital?

No.

An ecommerce business does not necessarily need to obtain finance from the company processing its payments or operating its store.

Independent merchant cash advance and revenue-based finance providers can potentially assess ecommerce businesses using other sources of payment and revenue data.

This can be useful where:

• no embedded offer is available
• the business wants to compare alternatives
• sales are spread across several platforms
• the merchant uses more than one payment processor
• the funding requirement is larger than an embedded offer
• the merchant wants to compare the total commercial terms.

An embedded funding offer can be convenient, but convenience should not replace comparison.

Merchant Advice Service view: ecommerce revenue is rarely one payment stream

One of the biggest differences between modern ecommerce businesses and traditional card-terminal merchants is that online revenue can be spread across several platforms at once.

An ecommerce business might generate revenue through:

• Shopify
• Stripe
• PayPal
• Amazon or another marketplace
• subscriptions
• a separate payment gateway
• telephone payments
• physical retail locations.

This creates an important merchant-finance question:

Which of these sales does the finance provider actually count?

Merchant Advice Service recommends establishing this before comparing the amount of funding offered.

A business generating £100,000 per month in total revenue may look very different to a provider if only £40,000 of that revenue flows through the payment channel used within the funding arrangement.

What if you use Shopify and PayPal?

Do not assume that only one payment method is relevant.

The correct answer depends on the funding provider and how it defines eligible sales.

For example, Shopify's current UK Capital documentation says its daily-sales calculation includes completed Shopify orders regardless of the payment-processing method used.

An independent MCA provider could use a different approach.

Before proceeding, ask:

• Are PayPal transactions included?
• Are they included when calculating eligibility?
• Are they included when calculating ongoing collections?
• Does PayPal revenue need to be evidenced separately?

What if you use Stripe and PayPal?

The same principle applies.

Stripe Capital's current UK information describes collections as being linked to sales processed through Stripe.

A merchant processing £50,000 through Stripe and another £30,000 through a separate provider should therefore not assume that the entire £80,000 will be treated identically within a Stripe-linked finance arrangement.

Where a business obtains funding from an independent provider, the provider may potentially assess revenue across several channels.

The exact calculation should be confirmed before accepting the offer.

What if your ecommerce business sells on marketplaces?

Marketplace revenue creates another layer of complexity.

The business needs to establish whether marketplace sales are:

• visible to the finance provider
• included in underwriting
• included in the ongoing collection calculation
• settled directly to the merchant
• subject to separate marketplace deductions or reserves.

Shopify's current Capital guidance says sales associated with the Shopify account can include sales channels and apps such as Shopify Marketplace Connect.

That does not mean every MCA provider will automatically include marketplace sales.

Can subscription businesses get a merchant cash advance?

Potentially.

A subscription business can generate measurable recurring payment revenue, which may be relevant to some sales-based finance providers.

However, providers may also consider characteristics including:

• monthly recurring revenue
• churn
• refund levels
• chargebacks
• billing frequency
• customer concentration
• payment-processing history.

Businesses should confirm whether subscription revenue is eligible and how recurring transactions are treated within the finance arrangement.

For more information about recurring payment infrastructure, read our Subscription Payment Processing guide.

Do refunds matter when applying for an ecommerce MCA?

Yes, they can.

Gross sales alone do not always tell the complete story of an ecommerce business.

Consider two retailers that each process £100,000 per month.

Merchant A has:

£3,000 of monthly refunds.

Merchant B has:

£25,000 of monthly refunds.

The headline processing volume is identical, but the underlying economics and risk profile are considerably different.

Shopify explicitly lists returns, chargebacks and disputes among the factors that can influence Capital eligibility.

Other providers may use their own criteria.

Do chargebacks affect ecommerce MCA eligibility?

They can.

Chargebacks affect more than merchant finance.

They can also influence:

• payment-provider risk assessment
• acquiring arrangements
• rolling reserves
• cash flow
• settlement
• overall merchant profitability.

For an MCA provider relying on payment data, frequent disputes can therefore be relevant to its assessment of the business.

There is no universal chargeback threshold at which an ecommerce business will or will not qualify for an MCA.

Can an ecommerce business with a rolling reserve get an MCA?

Potentially, but the cash-flow impact needs careful consideration.

An ecommerce merchant could potentially have:

• card-processing fees deducted
• a rolling reserve retained
• refunds deducted
• chargebacks deducted
• an MCA collection applied.

These deductions have different purposes and should not be described as one finance cost.

But they all affect the amount of usable cash available to the merchant.

This is particularly important for ecommerce businesses that have to purchase stock before receiving the revenue from subsequent sales.

How much MCA funding can an ecommerce business get?

There is no universal amount or multiplier that applies to every ecommerce business.

The amount available can depend on factors including:

• monthly sales
• recent trading performance
• sales consistency
• time trading
• refunds
• chargebacks
• existing finance
• sector
• payment platform
• provider risk appetite.

A large processing volume does not automatically guarantee a proportionately large funding offer.

Likewise, receiving a pre-qualified or platform-generated offer does not necessarily guarantee final approval.

Do you need a perfect credit score for an ecommerce MCA?

No universal credit-score rule applies to every merchant cash advance provider.

Sales-based finance providers may place significant weight on the recent trading and payment performance of the business.

However, that does not mean credit information is never considered.

Depending on the provider and structure, underwriting can potentially consider:

• business credit information
• director information
• existing borrowing
• bank statements
• payment history
• sales performance.

Businesses should therefore be cautious of claims suggesting MCA approval is completely independent of creditworthiness.

How quickly can an ecommerce MCA be approved?

Embedded finance can make the application process relatively streamlined because the platform may already hold transaction information about the merchant.

However, fast application does not mean guaranteed or instant approval.

Shopify currently says UK Capital applications are generally reviewed within 1–3 business days, although reviews can take longer in some cases.

Stripe says its Capital offers are based on factors including the merchant's processing history, with funding still subject to final review.

Independent providers may use different processes and timescales.

Businesses should avoid choosing finance purely because one provider advertises the fastest possible funding time.

Does an ecommerce MCA affect your payment gateway?

Potentially.

The answer depends on how collections are structured.

A payment gateway normally handles the technical movement of transaction information, while acquiring, processing and settlement can involve other organisations.

If the MCA is linked to a particular processor or payment stream, changing part of the ecommerce payment stack could affect the finance arrangement.

Before changing gateway, processor or acquirer, establish whether the change alters:

• the sales visible to the finance provider
• the collection mechanism
• settlement routing
• Merchant IDs
• the contractual finance arrangement.

Do you have to change payment processor to get an ecommerce MCA?

Not automatically.

Some finance providers can work alongside an existing payment provider.

Other arrangements are built directly around a particular payment platform.

There may also be situations where settlement needs to be rerouted or a processor needs to support a particular collection structure.

The correct question is:

“Is this finance compatible with the way my online payments are currently processed and settled?”

Read our specialist guide: Merchant Cash Advance and Your Payment Processor: Do You Need to Switch?.

What if you want to change Stripe or another processor while the MCA is outstanding?

Check the finance agreement before changing your payment setup.

If collections rely on the payment volume generated through a particular processor, moving sales elsewhere could affect the repayment or collection mechanism.

Before switching:

1. Review the MCA agreement.
2. Tell the finance provider about the proposed change.
3. Confirm whether the new processor can be supported.
4. Establish whether settlement instructions need to change.
5. Check whether the ecommerce integration itself needs migrating.

A processor migration can be considerably more complicated for an ecommerce business with stored cards, subscriptions or tightly integrated checkout technology.

For more information, read our guide to changing payment gateways and moving stored payment credentials.

What if your ecommerce business uses several processors?

This is increasingly common.

A business might use:

• Stripe for website transactions
• a separate acquirer for larger transactions
• PayPal
• a marketplace payment service
• another processor for subscriptions
• physical terminals in a showroom or store.

Before accepting sales-linked finance, establish:

• which processors count towards eligibility
• which sales count towards the collection
• which Merchant IDs are involved
• whether new payment channels need to be disclosed
• whether diverting sales to another processor affects the agreement.

Read our guide to multiple merchant accounts.

What happens if ecommerce sales are highly seasonal?

A sales-linked structure can behave differently from a fixed loan repayment when revenue fluctuates.

Consider an online retailer generating:

• £25,000 in February
• £50,000 in June
• £120,000 in November.

With a 10% collection percentage, the simplified monthly collections would be:

• February: £2,500
• June: £5,000
• November: £12,000.

The weaker month requires a smaller collection.

But the business gives up considerably more cash during its strongest month.

For ecommerce retailers, this needs to be considered alongside the cost of buying inventory ahead of peak trading periods.

Merchant Advice Service view: model the whole ecommerce cash-flow chain

For an ecommerce business, Merchant Advice Service recommends looking beyond the headline MCA amount and modelling the complete payment journey.

That means considering:

customer order → payment processor → processing fees → refunds and chargebacks → reserves → MCA collection → usable business cash.

For a multichannel business, the exercise should be repeated for each important payment stream.

This is particularly valuable where:

• different channels settle at different times
• one processor holds a rolling reserve
• marketplaces deduct their own fees
• refund rates are high
• stock has to be purchased before peak season
• the MCA only captures part of total revenue.

The amount of revenue a business generates is important.

The amount of that revenue actually available as working cash is equally important.

Example: an ecommerce business using several payment channels

Consider an ecommerce retailer generating £100,000 of monthly sales:

• £55,000 through its primary website processor
• £20,000 through PayPal
• £15,000 through marketplaces
• £10,000 through a physical showroom.

If a finance provider only uses the £55,000 primary processing stream within its collection mechanism, that is very different from an arrangement based on all £100,000.

The business should therefore ask:

“Which £1 of my revenue counts towards this agreement, and which does not?”

That question can prevent confusion later.

Should you accept an MCA offered inside Shopify or Stripe?

An embedded offer can be convenient.

The provider may already understand your sales history and can present the funding directly inside a platform the business uses every day.

But convenience does not automatically mean the offer is the most suitable option.

Compare:

• amount received
• total finance cost
• total collection
• percentage of sales collected
• expected collection period
• what happens if sales fall
• early settlement
• existing finance
• processor restrictions
• alternative funding available.

For a broader comparison, read Merchant Cash Advance vs Business Loan vs Revenue-Based Finance.

How should ecommerce businesses compare MCA costs?

Start with the amount the business will actually receive.

Then establish the total contractual collection.

For example:

• cash received: £30,000
• total collection: £36,000
• cash finance cost: £6,000
• sales collection percentage: 12%.

Do not treat the collection percentage as the finance cost.

The two figures perform different functions.

The business should also model how much cash remains after:

• processing fees
• the MCA collection
• refunds
• chargebacks
• rolling reserves
• marketplace fees where relevant.

Read our full guide to merchant cash advance costs, factor rates and holdbacks.

What should an ecommerce merchant check before accepting an MCA?

1. Which sales channels were used to assess my offer?
2. Which sales will be included in ongoing collections?
3. How much will I receive?
4. What is the total contractual collection?
5. What percentage of sales will be collected?
6. How are refunds and cancelled orders treated?
7. How are chargebacks treated?
8. Can I keep my existing processor and gateway?
9. What happens if I add or change a payment provider?
10. Are marketplace and subscription sales included?
11. What happens if my sales fall significantly?
12. What is the position if I settle early?

Don't assume ecommerce turnover and eligible MCA revenue are the same thing

This is perhaps the most important point for a multichannel online business.

A company might describe itself as having:

£1.2 million annual ecommerce turnover.

But its revenue could be split between:

• several processors
• multiple websites
• different legal entities
• marketplaces
• subscriptions
• international acquiring arrangements.

A finance provider may not necessarily treat all of that revenue in the same way.

Before making assumptions about funding capacity or repayments, establish exactly what data and revenue the provider is using.

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How Merchant Advice Service helps ecommerce businesses with merchant finance

Merchant Advice Service looks at ecommerce merchant finance from both a funding and payments perspective.

This means considering the MCA alongside the infrastructure used to generate and settle the underlying sales.

Areas we help businesses understand include:

• merchant cash advance structures
• sales-based repayments
• online payment processors
• payment gateways
• Shopify and ecommerce payment setups
• Stripe and other payment providers
• multiple Merchant IDs
• marketplace payments
• subscription processing
• settlement
• rolling reserves
• processor compatibility.

For ecommerce merchants, this can be particularly important because the finance arrangement may interact directly with the technology and payment channels responsible for generating the revenue.

MAS can help businesses understand those requirements and identify potentially relevant commercial finance or payment partners where appropriate.

You can view merchant cash advance options through the Merchant Advice Service Payments Directory®.

For more information about our independence, matching process and commercial relationships, read How Merchant Advice Service Works.

About Merchant Advice Service

Merchant Advice Service is a UK business-to-business payments information, comparison and provider-matching service.

Founded in 2016, MAS helps businesses understand their payment requirements and identify payment providers or specialist partners that may be relevant to the way they operate.

We provide information and support across areas including:

• merchant accounts
• payment gateways
• integrated payments
• merchant cash advance and payment-linked finance
• higher-risk merchant accounts
• international acquiring
• multiple currencies
• specialist payment integrations
• more complex provider requirements.

Merchant Advice Service is not an acquiring bank, lender or payment processor and does not make final underwriting decisions.

The MAS information, matching and introduction service is free to businesses. MAS may receive commission or a referral fee from some commercial partners where an introduction results in a completed product or account.

For full information about how our service operates, provider matching, independence and commercial relationships, read How Merchant Advice Service Works.

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Sources and market examples

Shopify Capital — UK Merchant Cash Advance

Shopify's current UK documentation explains its merchant cash advance structure, including the purchase of future receivables, daily sales-based remittances and the role of YouLend.

Shopify: Merchant Cash Advance for UK Merchants

Shopify Capital — Eligibility

Shopify publishes current eligibility information covering sales performance, platform history, disputes, returns, reserves, payment providers and other factors used when assessing Capital eligibility.

Shopify: Capital Eligibility

Stripe Capital — UK Business Financing

Stripe's current UK Capital information describes sales-based business finance with a fixed fee and automatic payments linked to a percentage of sales.

Stripe Capital UK

Stripe Capital — How It Works

Stripe's UK documentation explains its current Capital eligibility and payment structure, including the role of processing volume and YouLend.

Stripe: How Capital Works in the UK

Editorial and commercial disclosure

Merchant Advice Service is an independent payments information, comparison and provider-matching service.

Independent market examples: Shopify, Stripe and YouLend are referenced in this article because their publicly available information provides useful current examples of ecommerce and payment-linked merchant finance structures. Inclusion does not mean Merchant Advice Service has a commercial relationship with, recommends, or can introduce businesses to every provider listed.

Merchant cash advance, revenue-based finance, payment-processing and ecommerce-platform arrangements vary between providers. Eligibility criteria, costs, sales definitions, repayment or collection methods and platform requirements can change.

MAS may receive commission or a referral fee from some commercial partners where a business chooses to proceed following an introduction. Commercial relationships do not determine which providers may be referenced within our independent educational content.

Providers have not paid for inclusion in this article unless explicitly stated.

References to Shopify Capital and Stripe Capital reflect publicly available UK information at the time this article was reviewed in August 2026. Businesses should confirm current terms and eligibility directly with the relevant provider before making a decision.

This article provides general information and should not be treated as legal, tax, accounting or regulated financial advice.