GoDaddy Payments

GoDaddy Payments Help

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?

We provide MCA, which is an unsecured cash lending that is based on your business’s 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 to a lender.

Who underwrites and issues GoDaddy Capital MCA?

We are currently working with YouLend as our lending partner. YouLend will make MCA eligibility determinations and will underwrite and issue GoDaddy Capital MCAs. In the future, we may onboard additional lending partners to provide the best offering to our merchants.

Does applying for a GoDaddy Capital MCA hurt my credit score or require collateral?

There is no collateral needed and underwriting of the advance includes only a soft credit pull done by our lending partner so there's no impact on your credit score.

Am I eligible for a GoDaddy Capital MCA?

Merchants who are using GoDaddy Payments as their payment gateway are eligible to apply for GoDaddy Capital. However, the final decision on eligibility is determined by our lending partner based on their criteria like monthly revenue, number of months in business, overall business cash flow and so on.

Also, this feature is not yet available to merchants that have purchased GoDaddy Payments hardware or features through a third-party reseller. We expect to expand access to all merchants in the future.

If you don't use GoDaddy Payments as your payment processor, you are not eligible for GoDaddy Capital.

When will I hear back about my GoDaddy Capital MCA application?

Usually, you'll be informed about the decision on the funding application within 48 hours. If you're eligible, you'll also receive the available offers.

When will I receive the funds?

You should receive the funds within 24-48 business hours after you sign the funding contract.

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.

In general, the longer you've been trading with us and the higher your monthly revenue is, the better your offers will be.

Can I change my repayment rate after I accept my offer?

Typically, this is not allowed, but you can work with our funding partner YouLend 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?

YouLend will be automatically debiting the bank account to which 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?

Once the advance is deposited to your bank account, it is not possible to change the borrowed amount. However, if you need additional funds, you may become eligible for a new advance once you have paid back a certain percentage of your current advance.

When will I become eligible for another advance?

After you pay back a certain portion of your active advance or paid it back in full, you will be eligible for another advance. However, the final eligibility will depend on your current processing volumes, credit eligibility and ability to repay.

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 repay?

Repayment 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 repayment 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 lending partner is $900, the total amount you'll have to pay back 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 repayment of the total amount of $6900. If, on the next day, your daily sales is $1100, you'll pay back $220, and so on, until you pay back the entire amount.

How will I know my current balance?

To see your current outstanding balance, sign into your GoDaddy Payments dashboard and select Capitals. There you'll be able to see your current balance and review your full payment history.

What is the repayment length and is there a minimum payment amount?

There is no minimum payment amount because the repayment is calculated as a percentage of your daily sales. The repayment length also depends on your sales. If your sales go up, the MCA will be paid back 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 YouLend at the time of origination of the advance but it is not charged upfront. It becomes a part of the total repayment 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 repayment schedule, if your business doesn't have a sale on any particular day, there will not be any repayment 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 GoDaddy Guides.

More info

  • Learn more about our lending partner, YouLend.

Share this article