Shopify to offer cash loan advances for small businesses in Canada hit by coronavirus

FILE PHOTO: The logo of Shopify is seen outside its headquarters in Ottawa, Ontario, Canada, September 28, 2018. REUTERS/Chris Wattie

(Reuters) – Shopify Inc said on Monday it would provide cash advances to small businesses in Canada that are struggling due to the impact of the coronavirus outbreak on the global economy.

The Canadian e-commerce company launched a financing program, “Shopify Capital”, which offers cash advances that are repaid through future sales. The advances would range from C$200 to C$500,000 per eligible merchant.

Approval will be through an online application process and will take a few days, the company said in a blog post here

U.S.-listed shares of the company rose about 5% in morning trading.

Reporting by Ayanti Bera in Bengaluru; Editing by Bernard Orr

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source: reuters.com