The “everyday entrepreneurs” of GoDaddy just got access to a new financing option. The web hosting innovator has teamed up with online lending and technology platform Kabbage to enable its business customers to apply for and receive a Kabbage line of credit of up to $250,000 in a matter of minutes if approved.
“Our customers tell us all the time that flexible funding is critical to grow and run their businesses; new opportunities make it important to be able to access capital, quickly whether for online marketing, inventory or purchasing new equipment,” Kabbage CRO Laura Goldberg explained. “They simply can’t afford to wait weeks or months for a loan approval.”
The flexible lines of credit also mean that business borrowers are not obligated to make withdrawals. There is no fee for applying for Kabbage funding, and borrowers pay nothing until they access the funds. “Our customer base of over 200,000 small businesses across the U.S. understands the value of accessing the exact amount of funding they need when they need it,” Goldberg said.
In a statement, Kabbage and GoDaddy highlighted the role that a lack of capital played in undermining small business digital marketing efforts, in particular. Citing a survey of 500+ entrepreneurs, the companies noted that small businesses typically pointed to a lack of money as the main reason for not growing their presence online.
“We know that a lack of capital for marketing and other core activities remains a major roadblock to accelerate growth,” GoDaddy VP of global market operations Melissa Schneider said. “Our partnership with Kabbage is key in our ongoing mission to empower our customers and provide them with the resources they need to fuel their business needs.”
GoDaddy has more than 18 million customers and 9,000+ employees around the world. Headquartered in Scottsdale, Arizona, the company had 2017 revenues of $2.2 billion and a net income that same year of more than $15 million. Founded in 1997, GoDaddy is publicly-traded on the New York Stock Exchange under the ticker GDDY. The company has a market capitalization of $11 billion.
Founded in 2009, Kabbage demonstrated its Kabbage Card – which links directly to the customer’s Kabbage line of credit – at FinovateSpring 2015. More recently, the company announced that it was getting into the payments business with the launch of a new SME payments solution, Kabbage Payments. Also this fall, the Atlanta, Georgia-based company acquired fellow Finovate alum Radius, adding insights into millions of small businesses to its platform.
Kabbage is also an alum of our developers conference, FinDEVr SiliconValley 2015. At the event, the company’s Chief Technical Officer demonstrated how developers can use the Kabbage platform to accelerate the lending process.