سوال

I run an online dropshipping business on the Shopify platform. My customers and operations are based entirely in the United States, and all transactions go through US banking and payment channels. I am seeking Islamic legal guidance regarding a funding program offered by Shopify to help expand stores, which is known as "Shopify Capital" (or Merchant Cash Advance).

Here is how the arrangement practically works: Once my store builds a consistent sales history, Shopify’s automated system displays a pre-approved funding offer on my dashboard. When I accept, Shopify transfers a lump-sum amount into my account (for example, $1,000), which I use for marketing or general inventory needs. However, from day one, the agreement sets the total repayment amount at $1,130, which includes the original capital plus their service fee (called a "factor fee"). This extra $130 is fixed from the start and never increases.

Unlike traditional bank loans, there is no fixed monthly installment. Instead, Shopify automatically deducts a set percentage from my store’s daily gross sales (for example, 10%). This creates flexibility based on daily performance: on days with high sales, more money is deducted; on days with low sales, less is deducted; and if there are zero sales on a given day, nothing is deducted at all. Whether it takes two months or two years to repay the full amount, the total owed remains strictly fixed at $1,130. No interest compounds over time, and no late penalties are ever added. The deductions continue until the total amount is fully paid, at which point the contract ends automatically.

Because this agreement does not compound interest with time, charges no late fees, has no fixed monthly dues, and ties repayment directly to daily sales, I would like to clarify its status under Shariah: Is taking funding through Shopify Capital and paying this fixed extra fee permissible (Halal), or does it fall under the ruling of interest/usury (Riba)? Please provide guidance in light of the Quran and Sunnah.

اَلجَوَابْ بِاسْمِ مُلْہِمِ الصَّوَابْ

A fundamental and agreed-upon principle of Islamic jurisprudence states: "Every loan that brings a benefit is Riba (interest/usury)." Alongside this, another established legal rule used to assess financial dealings states: "In contracts, legal weight is given to the underlying reality and intent, not to mere words and forms."

When evaluated under these Shariah principles, the reality of Shopify Capital becomes clear: the company gives the merchant $1,000 in upfront cash and collects $1,130 in return. Even though the company calls the extra $130 a "fixed factor fee" or service charge and frames it as an advance purchase rather than a traditional loan, its true nature is simply trading cash for a larger amount of cash. This extra amount is not paid for any actual service; it is purely a conditional profit charged for providing the funds. The fact that the fee does not grow over time, carries no late penalties, and is deducted as a daily percentage of sales does not change its essence—because any conditioned excess on a loan, even if fixed once and never increased, still clearly falls under Riba.

Therefore, based on these core principles and the actual reality of the transaction, entering into a Shopify Capital contract and paying this additional fee is impermissible and prohibited (Haram) in Islamic law. And Allah knows best.

الدر المختار وحاشية ابن عابدين (رد المحتار) (5/ 166)

(قوله كل قرض جر نفعا حرام) أي إذا كان مشروطا كما علم مما نقله عن البحر، وعن الخلاصة وفي الذخيرة وإن لم يكن النفع مشروطا في القرض.

المبسوط للسرخسي (14/ 35)

«ونهى رسول الله - صلى الله عليه وسلم - عن قرض جر منفعة».

البحر الرائق شرح كنز الدقائق ومنحة الخالق وتكملة الطوري (6/ 276)

وحاصله عندنا قرض استفاد به المقرض أمن خطر الطريق للنهي عن قرض جر منفعة، وقيل إذا لم تكن المنفعة مشروطة فلا بأس به في البزازية من كتاب الصرف.

تبيين الحقائق شرح كنز الدقائق وحاشية الشلبي (6/ 29)

قال الكرخي في مختصره في كتاب الصرف وكل قرض جر منفعة لا يجوز مثل أن يقرض دراهم غلة على أن يعطيه صحاحا أو يقرض قرضا على أن يبيع به بيعا؛ لأنه روي أن كل قرض جر منفعة فهو ربا، وتأويل هذا عندنا أن تكون المنفعة موجبة بعقد القرض مشروطة فيه.