GoDaddy Capital Launches to Offer Up to $1 Million in Funding for Small Businesses Within 24 Hours.

GoDaddy launches GoDaddy Capital, a merchant cash advance program offering up to $1 million in funding within 24 hours. Exclusive to GoDaddy Payments users, the program features flexible repayment terms based on daily sales percentages. A survey by GoDaddy's Small Business Research Lab found that 51% of US small businesses operate with limited cash flow, with 31% citing access to capital as a scaling challenge.

GoDaddy (NYSE: GDDY) has introduced GoDaddy Capital, a merchant cash advance program designed to provide up to $1 million in funding to small and medium-sized businesses (SMBs) within 24 hours. Exclusively available to GoDaddy Payments users, this new offering aims to address the common challenge of limited financial resources faced by SMBs.

GoDaddy Capital allows businesses to pay down the advance through a fixed percentage of each day's sales, providing a streamlined platform to manage cash flow and secure working capital. The program is available to businesses that use GoDaddy Payments, with funding amounts ranging from $500 to $1 million based on monthly sales.

According to a survey by GoDaddy's Small Business Research Lab, 51% of U.S. small businesses operate with limited cash flow, while 31% cite access to capital as a primary scaling challenge [1]. GoDaddy Capital addresses these issues by offering quick and flexible access to capital, with automatic payment collection as a fixed percentage of daily revenue.

The introduction of GoDaddy Capital is part of the company's strategic expansion into financial services. By leveraging existing payment relationships, GoDaddy can create a potential high-margin revenue stream with minimal risk. The program also helps deepen customer lock-in and use transaction data for underwriting decisions.

GoDaddy Capital is available through the GoDaddy dashboard, requiring no paperwork and offering quick approval without impacting the business's credit. Small business owner Michael Wood has received over $100,000 in capital through GoDaddy Capital, demonstrating the recurring revenue potential of this offering [2].

The launch of GoDaddy Capital completes the company's transformation from a web services provider to a more comprehensive small business platform. This move addresses a persistent market gap in SMB financing and creates stronger retention and higher average revenue per user.

References:
[1] https://www.stocktitan.net/news/GDDY/go-daddy-capital-speeds-cash-to-small-2wlhpab2eqfe.html
[2] https://www.prnewswire.com/news-releases/godaddy-capital-speeds-cash-to-small-businesses-302535174.html