Here’s a follow-up to news earlier this month regarding additional funding for the small business lending company Kabbage. Now, PayPal has announced plans to acquire Swift Financial which, like Kabbage, is a marketplace lender that provides small businesses with secured lines of credit.
PayPal is not new to the small business loan marketplace. In 2013, the company launched PayPal Working Capital. According to PayPal, it has provided access to more than $3 billion in funding to more than 115,000 small businesses since it launched PayPal Working Capital.
In its announcement, PayPal said the acquisition will add to PayPal’s underwriting capabilities and expand the amount of data it can use to assess the creditworthiness of its customers. Swift said the acquisition will help “democratize financial services by enabling PayPal to further fill the small business funding gap.”
“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,” PayPal’s Darrell Esch wrote in announcing the deal. “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.”
According to its announcement, since being founded in 2006, Swift Financial has provided funding to more than 20,000 small businesses.
VIA | Techcrunch