Swift Financial

About Swift Financial

Swift Financial, operating as Swift Capital, was established in 2006 by founder Ed Harycki, a veteran of the credit card industry with experience at MBNA Corp. and Barclays Capital. Harycki, who holds an MBA from Northwestern University's Kellogg School of Management, identified a market inefficiency where small businesses were underserved by traditional banking institutions, particularly after the consolidation of large banks. This insight, developed during his tenure as Director of Business Lending at MBNA America, formed the bedrock of Swift Capital's mission.

The company was founded in Wilmington, Delaware, with the strategic goal of providing accessible working capital to small and medium-sized enterprises (SMEs) across the United States. Swift Capital's business model revolved around offering merchant cash advances and loans, utilizing data analytics to rapidly assess the financial health of a business. This technology-driven approach enabled decisions in minutes and funding in as fast as the same day, a significant departure from the lengthy processes of conventional banks. The firm offered funding amounts ranging from $5,000 to $500,000, basing eligibility on factors like monthly revenue and payment history, rather than solely on traditional credit metrics. Revenue was generated through fees and interest on its lending products, which included cash advances repaid from borrowers' revenues at rates comparable to credit cards.

A significant milestone in the company's journey was its acquisition by PayPal in 2017 for approximately $183 million. Prior to the acquisition, Swift Financial had demonstrated substantial growth, lending over $1.5 billion to more than 20,000 businesses and raising $98.8M in venture capital from investors like Sutter Hill Ventures, First Round Capital, and Third Point Ventures. The acquisition was a strategic move for PayPal to bolster its own small business lending arm, PayPal Working Capital. By integrating Swift's technology, PayPal enhanced its underwriting capabilities, allowing it to assess supplemental information beyond its own platform's data to serve a broader range of small and mid-sized businesses and offer larger loan amounts. Following the acquisition, Swift Financial's team was integrated into PayPal's Business Financing Solutions unit.