What is GoDaddy Capital?
GoDaddy Capital is a Merchant Cash Advance (MCA) product offered to existing merchants who are currently using GoDaddy Payments as their payment gateway. Since GoDaddy Capital is specifically tailored to provide MCA to our merchants, we don't offer standard loans. To learn more about GoDaddy Capital, select a question to see its answer:
- How is GoDaddy Capital MCA different from a standard loan?
- Who underwrites and issues GoDaddy Capital MCA?
- Does applying for a GoDaddy Capital MCA hurt my credit score or require collateral?
- Am I eligible for a GoDaddy Capital MCA?
- Can I still apply for GoDaddy Capital if I have a loan or MCA with another payment provider?
- When will I hear back about my GoDaddy Capital MCA application?
- When will I receive the funds?
- What offers can I expect?
- Can I change my payment rate after I accept my offer?
- Can I use a different bank account for my GoDaddy Capital funds from the one I have with GoDaddy?
- Can I change my advance amount after the funds have been deposited?
- When will I become eligible for another advance?
- What can I use the funds for?
- How will I pay my MCA?
- How will I know my current balance?
- What is the MCA payment length and is there a minimum payment amount?
- What interest rate and fees apply?
- Can I prepay the advance or make an early one-off payment?
- What happens if I miss a payment and are there late fees?
- How can I contact GoDaddy about the Capital program?
How is GoDaddy Capital MCA different from a standard loan?
We provide an MCA, which is a financing option where a business receives a lump sum of money in exchange for a percentage of its future revenue. Therefore, GoDaddy Capital allows you to raise finance against your future sales processed with GoDaddy Payments.
Unlike with a standard bank loan, there are no interest rates, annual percentage rates (APRs) or fixed monthly payments. Instead, you will be selling a portion of your future receivables for a flat fee.
Who underwrites and issues GoDaddy Capital MCA?
We are currently working with YouLend and Pipe as our funding partners. They will make MCA eligibility determinations and will underwrite and issue GoDaddy Capital MCAs. In the future, we may onboard additional funding partners to provide the best offering to our merchants.
Does applying for a GoDaddy Capital MCA hurt my credit score or require collateral?
There’s no collateral required. Offers are processed by two separate partners—YouLend, which may perform a soft credit check, and Pipe, which does not perform a credit check—so there’s no impact on your credit score.
Am I eligible for a GoDaddy Capital MCA?
Anyone who is processing with GoDaddy Payments as their payment gateway is eligible to apply for GoDaddy Capital. However, the final decision on eligibility is determined by our funding partners based on their criteria like monthly revenue, number of months in business, overall business cash flow and so on.
If you don't use GoDaddy Payments as your payment processor, you are not eligible for GoDaddy Capital at this time. To sign-up for GoDaddy Payments, visit this page.
Can I still apply for GoDaddy Capital if I have a loan or MCA with another payment provider?
Yes! GoDaddy Payments merchants can still apply for GoDaddy Capital if they have existing lending through another provider. Learn more about how the balance transfer works here. GoDaddy Capital terms may vary from the terms of your existing loan or MCA.
When will I hear back about my GoDaddy Capital MCA application?
Usually, it will take only a few hours to get approved, but the approval times may vary on a case-by-case basis. You’ll be updated via email on any changes in your application, approval, and funding status. If you're eligible, you'll also receive the available offers.
When will I receive the funds?
You should receive the funds in as little as 24 business hours after you sign the funding contract. (This is subject to your bank's hold policies.)
What offers can I expect?
Your offers will be based on your online and/or in-person sales history processed through GoDaddy Payments and other criteria. Our offers may also consider your processing history from other providers if you have other revenue sources.
In general, the longer you've been trading with us and the higher your monthly revenue is, the better your offers may be.
Can I change my payment rate after I accept my offer?
Typically, this is not allowed, but you can work with our funding partners to see if this is an option.
Can I use a different bank account for my GoDaddy Capital funds from the one I have with GoDaddy?
Our funding partners will be automatically debiting the bank account where your GoDaddy Payments payouts are deposited. Therefore, you must use the same bank account for your GoDaddy Payments payouts and the GoDaddy Capital program.
Can I change my advance amount after the funds have been deposited?
Through YouLend, if you need an additional advance, you may become eligible for more once you have paid a certain percentage of your current advance. With Pipe, if you haven’t used the entire pre-approved amount, you may be elgibile for an additional draw on any amount remaining from your pre-approved offer.
When will I become eligible for another advance?
After you pay a certain portion of your active advance or paid it in full, you may be eligible for another advance. However, the final eligibility will depend on your current processing volumes, credit eligibility and ability to pay for your MCA.
What can I use the funds for?
You can use the funding for any business purpose. Most of our merchants use the funding to buy inventory, invest in advertising, carry out refurbishments, add a new location, or to manage a temporary disruption.
How will I pay my MCA?
Payments will happen automatically as a fixed percentage of your daily sales. This means that, unlike traditional business loans with an interest rate that is always ticking, GoDaddy Capital MCA deducts the payment and the initially agreed flat fee from your cash flows without any additional fees or charges.
Example: If you get a $6000 MCA and a flat fee you have to pay to our partner is $900, the total amount you'll have to pay is $6900. If your payment rate is 20% and your daily sales are $1000, on that day, $200 will be deducted from your cash flow towards the payment of the total amount of $6900. If, on the next day, your daily sales are $1100, you'll pay $220, and so on, until you pay the entire amount.
How will I know my current balance?
To see your current outstanding balance, sign into your GoDaddy Payments dashboard and select Capital. There you'll be able to see your current balance and review your full payment history.
What is the MCA payment length and is there a minimum payment amount?
There is no minimum payment amount because each payment is calculated as a percentage of your daily sales. The payment length also depends on your sales. If your sales go up, the MCA will be paid sooner; if the sales are slow, it'll take longer.
What interest rate and fees apply?
Only a flat fee is charged for the GoDaddy Capital MCA and there is no interest. This flat fee is agreed upon between you and our funding partners at the time of origination of the advance but it is not charged upfront. It becomes a part of the total MCA payment and is deducted from your cash flow.
Can I prepay the advance or make an early one-off payment?
Yes, you can prepay the advance without any penalty.
What happens if I miss a payment and are there late fees?
Since there is no set payment schedule, if your business doesn't have a sale on any particular day, there will not be any payment on that day. There are no penalties or late fees.
How can I contact GoDaddy about the Capital program?
For additional information about GoDaddy Capital, you can contact us for assistance.