Kabbage announced a strategic partnership with GoDaddy to provide small and medium businesses with access to capital.
The partnership: Kabbage’s online lending platform is now available to GoDaddy’s U.S. customers to access a business line of credit in minutes.
- Customers can access flexible lines of credit of up to $250,000 in minutes after filling out a short application.
- Existing GoDaddy customers can get $100 off their first month’s fees
- “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,” said Melissa Schneider, GoDaddy’s vice president of global marketing operations.
What SMBs are looking for: In anticipation of this partnership, GoDaddy and Kabbage surveyed over 500 entrepreneurs to better understand how small business owners tackle obstacles to growth in their businesses.
- Close to 50 percent chose a lack of money as the most significant impediment to growing their company’s digital presence and marketing.
- 60 percent of respondents experienced an increase in revenues after investing in online advertising.
- As a result of investing in online advertising, 44 percent of respondents reported an uplift in sales as high as 25 percent.
"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," said Kabbage chief revenue officer Laura Goldberg.
Kabbage partners to grow: The GoDaddy partnership for Kabbage is another example of how the SMB lender uses collaborations as part of its growth strategy.
- Kabbage signed a deal with ecommerce giant Alibaba earlier in 2019 to provide point of sale financing to US SMBs. Alibaba's PayLater offering gives SMBs up to $150,000 in financing and approval in as fast as 10 minutes via a tie-up with Kabbage.
- Kabbage's early roots were in lending to eBay businesses and found that tapping into larger communities of SMBs was a good growth tactic.
- In September, Kabbage acquired Radius Intelligence a data platform that gives insight into cashflow for 20 million SMBs.
- Kabbage sealed a partnership last May with upstart bank Azlo. Together, the two firms launched Mission Street Capital, an SMB lender.