Shopify users in the North America will now have access to merchant cash advances, the company has announced. The e-commerce software experts will allow eligible Shopify merchants obtain a cash advance in return for a pre-agreed percentage of their daily sales.

The move comes after fellow tech giants PayPal and Square entered the business lending market with their own business finance products. Shopify said they identified that their client base would benefit greatly from the product due to their circumstances.

Business analyst Simon Peters said: “A merchant cash advance is perfect for businesses who are perhaps not truly established enough to secure finance through their bank, or for those who want their loans to be repaid in-line with their growth”.

A merchant cash advance works in such a way that merchants pay back the loan based on their daily sale volumes. This means that slower months result in lower repayments, and busier months see the repayments increase. It’s that flexibility that has attracted thousands of businesses to use the product, so it’s no surprise that Shopify have entered the market.

The service is likely to be available to Shopify merchants in the UK in due course. The Canadian software company have claimed that transparency is a big part of their marketing strategy, insisting that all fees and charges will be clearly displayed to the merchant before anything is agreed.