How FreeTheRoots Cut Payout Times From Days to Hours and Grew Margins by 3% with Shopify

Background: A Growing Brand Stuck Waiting for Money

FreeTheRoots launched in 2018 to bring Jamaican-inspired haircare products to the world. Founders Josh Thompson and his brothers saw online demand soar, but their bank held sales revenue for up to six days. That lag forced smaller ingredient orders, higher costs, and shrinking profit margins.

Cash Flow Challenges

Even as orders climbed, the team couldn’t access funds to buy in bulk. Late disbursements meant missing out on supplier discounts. On top of that, banking interfaces were clumsy, costing hours each week just to reconcile transactions.

Choosing Shopify Financial Tools

The solution arrived in the form of Shopify Capital, Balance, and Credit. A quick application for a growth loan through Shopify Capital freed up cash for Black Friday inventory. Then, linking Shopify Balance to Shopify Payments cut payout times from days to a few hours. The brothers created separate Balance sub-accounts for ad spend, loan payments, and operating expenses. QuickBooks integration meant categorizing transactions took minutes instead of hours.

Results That Tell the Story

• Sales payouts in as little as six hours.
• Profit margins improved by up to 3% thanks to bulk purchase discounts.
• Saved eight hours per week on financial reconciliations.
• Obtained timely growth financing for warehouse expansion.

Moving ad budgets to Shopify Credit unlocked cashback rewards and flexible spending. Today, FreeTheRoots relies on Balance for most expenses and enjoys APY rewards on idle funds. With financial friction out of the way, they focus on product innovation and community impact.

Next Steps for FreeTheRoots

The company plans to reinvest savings into new product lines and expand manufacturing capacity. With Shopify’s financial suite in place, the founders are confident they can keep up with growing demand without the old cash flow headaches.