GoDaddy Introduces Merchant Cash Advance Program for Small Businesses with Flexible Payment Schedule

GoDaddy Capital is a merchant cash advance program that provides up to $1 million to small and medium-sized businesses in as little as 24 hours. The program allows businesses to pay down the advance through a fixed percentage of each day's sales, giving them a streamlined platform to manage cash flow and secure working capital. The introduction of GoDaddy Capital aims to address the common challenge of limited financial resources faced by small businesses.

GoDaddy (NYSE: GDDY) has launched 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. This initiative, exclusively available to GoDaddy Payments users, aims to address the persistent challenge of limited financial resources faced by SMBs [1].

The program offers flexible repayment terms based on daily sales percentages, making it an attractive option for businesses seeking quick and manageable access to capital. According to GoDaddy's Small Business Research Lab survey, 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 streamlines the funding process through the GoDaddy dashboard, requiring no paperwork and offering quick approval without impacting the business's credit. The service allows businesses to receive funding from $500 to $1 million based on monthly sales, with automatic payment collection as a fixed percentage of daily revenue, accommodating seasonal business fluctuations [1].

The company's entry into small business lending leverages existing payment relationships to create a potential high-margin revenue stream with minimal risk. By restricting eligibility to existing GoDaddy Payments users, GoDaddy is able to deepen customer lock-in and use transaction data for underwriting decisions [1].

GoDaddy's strategic expansion into financial services is validated by market research indicating that 51% of small businesses operate with limited cash flow and 31% cite capital access as a primary scaling hurdle [1]. The testimonial from Michael Wood, who has received over $100,000 in capital through GoDaddy Capital, demonstrates the recurring revenue potential of this offering [1].

The introduction 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