GoDaddy Capital Speeds Cash to Small Businesses

Rhea-AI Summary

GoDaddy (NYSE: GDDY) has launched GoDaddy Capital, a merchant cash advance program offering up to $1 million in funding to small and medium-sized businesses within 24 hours. The program, exclusively available to GoDaddy Payments users, features flexible repayment terms based on daily sales percentages.

According to GoDaddy's Small Business Research Lab survey of 2,100 U.S. small businesses, 51% operate with limited cash flow, while 31% cite access to capital as a primary scaling challenge. The program streamlines the funding process through the GoDaddy dashboard, requiring no paperwork and offering quick approval without credit impact.

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.

Positive

• Quick funding access of up to $1 million within 24 hours
• No credit impact or paperwork required for application
• Flexible payment structure based on daily sales performance
• Integration with existing GoDaddy dashboard for streamlined operations
• Ability to receive multiple rounds of funding as businesses grow

Negative

• Limited availability - only accessible to GoDaddy Payments users
• Funding decisions and advances managed by third-party partners, not GoDaddy directly

Insights

Fintech Strategist

GoDaddy's entry into small business lending leverages existing payment relationships to create a potential high-margin revenue stream with minimal risk.

GoDaddy has strategically expanded beyond its domain and hosting roots with GoDaddy Capital, a merchant cash advance offering that allows small businesses to access up to $1 million in funding within 24 hours. This move represents a significant vertical expansion into financial services, targeting a well-documented pain point among SMBs.

The company's approach is particularly shrewd for three reasons: First, by restricting eligibility to existing GoDaddy Payments users, they're leveraging transaction data they already possess for underwriting decisions while deepening customer lock-in. Second, the repayment structure—taking a fixed percentage of daily sales—creates a built-in risk management mechanism that adjusts to business performance. Third, GoDaddy is limiting its direct exposure by partnering with external capital providers (noted in the fine print that funding is "provided solely by GoDaddy's partners").

Their market research indicating that 51% of small businesses operate with limited cash flow and 31% cite capital access as a scaling hurdle validates the opportunity. What's notable is that this offering creates a potential high-margin revenue stream for GoDaddy without requiring significant balance sheet commitment, as they're likely earning origination fees or revenue shares while partners bear the actual lending risk.

The testimonial citing four separate capital infusions totaling over $100,000 demonstrates the recurring revenue potential. This product completes GoDaddy's transformation from web services provider to a more comprehensive small business platform, creating stronger retention and higher average revenue per user while addressing a persistent market gap in SMB financing.

Flexible payment schedule adjusts to business's daily revenue

TEMPE, Ariz., Aug. 21, 2025 /PRNewswire/ -- GoDaddy (NYSE: GDDY) today introduced GoDaddy Capital ¹, a merchant cash advance program that puts up to $1 million in the hands of small- and medium-sized businesses in as little as 24 hours. Available only to GoDaddy Payments users, the new offering lets small businesses pay down the advance through a fixed percentage of each day's sales, giving them one streamlined platform to take payments, manage cash flow and secure working capital.

Small Businesses Struggle to Scale Due to Limited Financial Resources

A recent survey of 2,100 U.S. small businesses from the GoDaddy Small Business Research Lab found the need for access to capital is a common theme:

• More than half of small businesses (51%) said they operate with limited cash flow, which they consider their biggest financial barrier to growth.
• Around 1 in 5 (21%) identified access to capital as one of their top three challenges when starting their business — a consistent trend over the past five years.
• Nearly 1 in 3 (31%) listed access to capital/funding as a primary hurdle to scaling their business — reinforcing the sustained need for more flexible financing solutions.

"In today's AI-driven, agentic world—where SMBs expect fast, intuitive, and seamless experiences—the standard banking loan process is surprisingly archaic," said Kasturi Mudulodu, president of Commerce at GoDaddy. "When a business needs a small, quick infusion of capital, banks call it 'too small,' drown owners in paperwork, and demand rigid payment terms. To make financing simple and intuitive for small businesses, we built GoDaddy Capital right into the GoDaddy dashboard. GoDaddy Capital provides quick, variable-size funding and gives businesses the ability to adjust payments on the cash advance based on their success."

How GoDaddy Capital Works

1. Submit an application—With no paperwork, applying only takes a few clicks and there is no impact to the small business's credit. Businesses can apply from their GoDaddy Commerce Home dashboard.
2. Choose from customized offers – Businesses can review several offers of $500 to $1 million based on their monthly sales, and decide which is best for their business goals.
3. Receive funding quickly—Once approved, business owners will get funded in as little as 24 hours.
4. Enjoy flexible payments in proportion to sales—GoDaddy Capital automatically reserves a fixed percentage of the business's sales, enabling merchants to pay down the cash advance more during the busier months and less when business slows.
5. Get funds, grow, repeat—After an initial cash advance, if the business is eligible, they can apply for more to keep growing. 

GoDaddy Capital Helps Small Businesses Grow

Small business owner and GoDaddy customer Michael Wood has tapped GoDaddy Capital on four separate occasions to help grow his business, Jacksonville Chimney Pros. To date he's received over $100,000 in capital.

"GoDaddy Capital was hard to beat," said Wood. "The convenience, quick approval process and next-day funding let me take on more large projects without keeping a large buffer in the bank."

GoDaddy Capital empowers small businesses through:

• Built-in flexible payments help business owners easily balance budgets and grow manageably, which is especially important for seasonal businesses.
• Quickly getting funded can unlock businesses' ability to buy more inventory or upgrade their equipment, broaden their market reach, drive operational success, or boost their cash flow to support long-term growth.
• Having access to capital within their GoDaddy dashboard saves businesses time by having one place to accomplish everything.

To learn more about GoDaddy Capital or sign up for GoDaddy Payments, visit GoDaddy.com/payments.

¹ GoDaddy Capital funding subject to application, underwriting, and approval, which is provided solely by GoDaddy's partners. Credit decisions and cash advances are managed solely by GoDaddy's partners.

About GoDaddy
GoDaddy helps millions of entrepreneurs globally start, grow, and scale their businesses. People come to GoDaddy to name their idea, build a website and logo, sell their products and services and accept payments. GoDaddy Airo^®, the company's AI-powered experience, makes growing a small business faster and easier by helping them to get their idea online in minutes, drive traffic and boost sales. GoDaddy's expert guides are available 24/7 to provide assistance. To learn more about the company, visit www.GoDaddy.com. 

Source: GoDaddy Inc.

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SOURCE GoDaddy Inc.

FAQ

How much funding can businesses get through GoDaddy Capital?

Businesses can receive funding ranging from $500 to $1 million through GoDaddy Capital, with amounts based on their monthly sales.

What are the requirements for GoDaddy Capital merchant cash advances?

Businesses must be GoDaddy Payments users to access the program. The application requires no paperwork and has no impact on credit score.

How long does it take to receive funding from GoDaddy Capital?

Approved businesses can receive funding in as little as 24 hours after application.

How does GoDaddy Capital's repayment structure work?

Repayment is structured as a fixed percentage of daily sales, automatically adjusting payment amounts based on business performance.

What percentage of small businesses face cash flow challenges according to GoDaddy's research?

According to GoDaddy's survey, 51% of small businesses operate with limited cash flow, considering it their biggest financial barrier to growth.

Can businesses receive multiple rounds of funding through GoDaddy Capital?

Yes, eligible businesses can apply for additional funding rounds after their initial cash advance to support continued growth.