Swift Capital is an independent provider of short-term funding, specializing in business advances. In order to provide small businesses with funding, CEO Ed Harycki founded Swift Capital in 2007. After decades of working in the banking industry, Harycki found that business owners were constantly struggling to access fast and simple working capital, and he wanted to create a quick and simple system for businesses to obtain funding.
Typical Swift Capital Customer
The typical Swift Capital customer is looking for a way to receive quick funds up to $500,000. Even though Swift Capital's requirements are lower than other top companies, the typical customer exceeds all of the requirements.
These funds are typically used for inventory, machinery and equipment, or business upgrades.
- 500 credit score
- One year in business
- $50,000/year current revenue
- Business Advances with No APR
- Offers Large Sums of Capital
- Best Price Guarantee
- Easy Application Process
- Fast Funding
Business Advances with No APR
One of the first benefits prospective customers will find when visiting Swift Capital's website is that they offer business advances. For these advances, there is no APR, but instead there is a required premium fee on the advances. These premium fees are one-time costs, instead of yearly or monthly rates, and with Swift Capital they start at 9.9 percent and max out at 42.9 percent. The rate depends on the size of the advance and the risk incurred with each advance. Again, this is not an interest rate, but a one-time fee that is only charged at the beginning of the process. Swift Capital is able to provide these one-time fees because the advance payment time is typically between 3 and 12 months. Instead of loan repayment, which is normally drawn out over years, businesses are encouraged to pay their advances quickly. Swift Capital's website notes that typically advance payment is conducted by a daily or weekly deduction system that comes straight from the business checking account. For many businesses, this cash flow method is preferred to monthly payment. However, Swift Capital's website also emphasizes that weekly payments are more common than daily payments.
Offers Large Sums of Capital
Another notable benefit is that Swift Capital offers up to $500,000 in funds. Compared to some other independent lenders or investors, this amount is substantially higher. While each business owner must be evaluated for their specific needs, the potential to secure up to $500,000 in funding from Swift Capital will be an enticement for many businesses looking to avoid banks.
Best Price Guarantee
Swift Capital's "Best Price Guarantee" is extra assurance that they can deliver the best offer to each individual business owner. The Best Price Guarantee states that in the event that a business is approved by a purchaser, the business will receive an approved offer from a competing purchaser at a lower discount rate than that which is offered by the original purchaser. The purchaser will beat the discount rate or pay the business $500.
Easy Application Process
The application process is simple and quick with Swift Capital, as was the main goal by its founders. The application is free and businesses can typically know whether or not they are approved within five minutes. In order to apply for funding from Swift Capital, businesses must be able to provide the following information:
- Average monthly sales figures
- Social Security Number of business owner
- Business tax ID
- Some applications will require additional information (e.g. four months of bank statements)
The Swift Capital website also advertises that they can deliver funds within 1 hour for smaller advances. Bigger cash advances typically require 24-72 hours to deliver the funds. Even this additional time could still be much faster than some banks can disburse loans.
The biggest benefits of Swift Capital are listed below:
- One-time premium fee on cash advances (9.9+ percent)
- No interest fees on advances
- Up to $500,000 in funds
- No prepayment or closing fees (besides the one-time premium fee)
- Free application process
- Approval within five minutes
- Funding within one hour (for smaller amounts)
- Best Price Guarantee
- Swift Premier
- Short Repayment Terms
While these are arguably not bad aspects of Swift Capital, the challenges of receiving funds from Swift Capital are mainly due to the requirements that each business must fulfill. These requirements include:
- Being in business for one year
- Bringing in $50,000 of annual revenue
- A personal minimum credit score of 500
- (Sometimes) four month's bank statements for evaluation
These requirements are certainly not the most rigid you will find among other small business lenders. Many big banks require larger revenues and more time in business.
Short Payment Schedules
Depending on your business and your financial situation, the payment schedules that Swift Capital offers could be seen as negative. Business advances from Swift Capital are expected to be repaid in 3 to 12 months. Likewise, most businesses that receive are expected to make small weekly payments that are deducted directly from the business checking account each week. While Swift Capital does mention that certain businesses may qualify for weekly payments, this method of frequent payment may not work for many businesses. These expected payment methods should be a central consideration for businesses looking for funding.
The Bottom Line
When it comes to Swift Capital, the bottom line is that this is an excellent option for quick, short-term cash. Businesses looking for fast funding that they will pay within a short amount of time will find exactly what they are looking for with Swift Capital. Not to mention, that Swift Capital offers larger amounts of money than some other lenders. Based on Swift Capital's website, it appears that the founders are very familiar with the banking industry and have thus attempted to create solutions that will bypass some of the challenges small businesses face when applying for business loans. While there are definitely very clear benefits to partnering with Swift Capital, it serves a very specific niche of businesses-and for that niche; it may very well be the perfect solution.