Fora Financial vs Shopify Capital: In-depth review
Comparing the offerings of Fora Financial and Shopify Capital? Our detailed comparison helps you select the best option.
Key Metrics Comparison
#1 Fora Financial
6+ months in business; $12k monthly revenue; 500+ credit score; No collateral required (UCC lien may be filed)
2.5% origination fee (waived if early payoff)
#6 Shopify Capital
Active Shopify store with sufficient sales history
No additional fees (fixed cost of funds only)
| Metric | Fora Financial | Shopify Capital |
|---|---|---|
| MCA Rank | #1of 27 Score: 88/100 | #6of 27 Score: 81/100 |
| Factor Rate | 1.10 - 1.40 | 1.10 - 1.13 |
| Funding Amount | $5k - $1.5m | $200 - $1m |
| Repayment Term | 4 - 18 months | 0 - 18 months |
| Additional Fees | 2.5% origination fee (waived if early payoff) | No additional fees (fixed cost of funds only) |
| Requirements | 6+ months in business; $12k monthly revenue; 500+ credit score; No collateral required (UCC lien may be filed) | Active Shopify store with sufficient sales history |
Fora Financial
Overview
Provides "Revenue Advance" up to $1.4M with flexible repayment tied to sales. Offers early payoff discounts
Repayment Structure
Fixed % of daily or weekly receipts (no fixed term)
Shopify Capital
Overview
Only for Shopify merchants. Typically offers 3 advance options with differing amounts and factor rates. Repayment expected within 18 months.
Repayment Structure
Daily remittance of a % of Shopify store sales until "Total to remit" is paid
How We Rank MCA Providers
We evaluate each provider based on key factors that matter most to businesses seeking funding:
High Impact Factors
Lower rates score significantly better. We look for competitive rates that minimize your total cost.
Higher funding limits score better, giving you more flexibility for larger investments.
Medium Impact Factors
Flexible terms and payment options improve scores. Platform-dependent providers receive penalties.
More lenient qualification criteria score better. We reward accessibility for newer businesses.
Additional Factors
Fewer fees score better. When fee information isn't available, we assign a neutral score.
Faster funding improves scores, with same-day and 24-hour funding scoring highest.
Important Notes
- Providers requiring specific platforms (like Shopify or PayPal) receive significant penalties due to reduced flexibility.
- When information about fees isn't available, we use a neutral score to ensure fair comparison.
Industry Context
With traditional bank loans becoming harder to obtain, merchant cash advances present an accessible financing option for businesses.
A detailed comparison of providers highlights the unique advantages each brings to the table.
Our Analysis
Provider rankings are calculated using a comprehensive evaluation of key performance metrics.
Match provider requirements with your business profile to ensure a suitable partnership.
Frequently Asked Questions
How do factor rates affect total cost?
Factor rates directly determine your total repayment amount. For example, a factor rate of 1.2 means you will repay 120% of the advance amount. Lower factor rates result in lower total costs.
What makes a good repayment term?
The ideal repayment term should align with your business cash flow cycle and revenue patterns. Shorter terms often mean higher daily payments but lower total costs, while longer terms offer more manageable payments but may cost more overall.
How important are qualification requirements?
Qualification requirements indicate how accessible the funding is for your business. While stricter requirements often come with better rates, more lenient criteria can be valuable for newer businesses or those with challenging credit histories.
Should I consider additional fees?
Yes, additional fees can significantly impact the total cost of funding. Look for transparent fee structures and consider both the factor rate and any additional fees when comparing providers.
Expert Tips for Choosing an MCA Provider
What to Look For
- Clear, transparent factor rates and fee structures
- Flexible repayment terms that match your business cycle
- Funding amounts that align with your needs
- Reasonable qualification requirements
Watch Out For
- Hidden fees or unclear cost structures
- Inflexible repayment schedules
- Excessive early repayment penalties
- Aggressive sales tactics or pressure to decide quickly
Ready to Make Your Decision?
Compare more providers to find your perfect funding match.