Together, the companies are expanding access to financing for GoDaddy entrepreneur users, the firms announced in a press release on Monday (Nov. 4). Their strategic partnership allows GoDaddy users in the U.S. to access Kabbage’s business line of credit offering of up to $250,000, which businesses can obtain in a few minutes.
“Working every day with our small business customers has made us intimately familiar with what our customers are doing to successfully grow their business, as well as common challenges,” explained Melissa Schneider, GoDaddy vice president of Global Marketing Operations in the release. “We know that a lack of capital for marketing and other core activities remains a major roadblock to accelerate growth. 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.”
The companies noted that small businesses are not charged to apply for funding via Kabbage, and, if approved, will not be penalized if they do not draw down on their line of credit.
“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,” Kabbage CRO Laura Goldberg said in the release. “Our customers tell us all the time that flexible funding is critical to grow and run their business; new opportunities make it important to be able to access capital quickly whether for online marketing, inventory or purchasing new equipment. They simply can’t afford to wait weeks or months for a loan approval.”
In addition to announcing its partnership with Kabbage, GoDaddy released research about the challenges entrepreneurs face in growing their businesses. A survey of 500 customers found 60 percent see revenue increases after they invest in online advertising, while 43 percent agree their websites are the most helpful digital tool to grow and expand their businesses.
Nearly 50 percent of companies surveyed said a lack of money is the biggest challenge to expanding their online presence or investing in online advertising.