GoDaddy to Speed Cash to Small Business
GoDaddy (NYSE: GDDY) shares weakened Thursday, on the introduction of GoDaddy Capital , 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.
This morning’s news release points to a recent poll, 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 one 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 one 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."
GDDY shares slid $2.13, or 1.5%, to $144.18.
