PayPal acquires Swift Financial to help SME lending

By Dan Wilson August 10, 2017 - 9:21 pm

PayPal has announced it will be buying Swift Financial in a bid to develop the SME lending side of their business. Working Capital has already been a huge success already, lending to existing PayPal users a total of $3 billion to more than 115,000 small businesses since inception.

Darrell Esch, VP & Commercial Officer, Global Credit, PayPal says in the announcement: “We know and value Swift’s technology platform and people, and we believe their talent and capabilities will further strengthen our overall merchant value proposition. Building upon an existing commercial relationship, the acquisition of Swift Financial will enable us to better serve small businesses by enhancing our underwriting capabilities to provide access to affordable business financing solutions to more businesses to help them grow and thrive. While PayPal Working Capital provides access to capital based exclusively on proprietary insights, Swift’s technology will allow us to assess supplemental information to more fully understand the strength of a business and provide access to complementary financing products to meet the needs of small and mid-sized businesses. With these capabilities, Swift Financial will help accelerate our efforts to democratize financial services by enabling PayPal to further fill the small business funding gap.”

It’s good to see that PayPal is exploring further opportunities in SME lending. There’s no doubt that finance remains a problem for SMEs, especially those operating online. Trad banks and lending houses have difficulty understanding the nuances of internet merchants. Paypal gets it but clearly wants to enhance what they have on offer. If you have capital on hand then lending it at a decent rate makes perfect sense.

Other providers also occupy the space. Amazon lends to its sellers too and the likes of iwoca also lend, basing their credit decisions on trading evidence they have to hand. But more competition and innovation is most welcome.

Comments are closed.

Featured in this article from the Tamebay Guide – companies that can help you grow and manage your business.


PayPal Working Capital is a merchant cash advance linked directly to your PayPal account.

See More Companies >

Recent Comments

15 hours ago
Gav: @ Chris Haha, much simpler, but I guess they could find a reason why that wouldn't...
15 hours ago
Victor: Exactly jonah Of course I dont want ebay to ding my account I dont want ebay...
15 hours ago
Chris Dawson: ...or just give a single voucher £20 every two months. Seems like a great idea...
16 hours ago
Chris Dawson: You sound like you'd have preferred eBay to ding your account when the couriers were...