Swift Capital offers small businesses a simple and affordable way to borrow money quickly. It can wire $5,000 to $500,000 to a small business account within an hour. And it’ll lend up to $500,000 within 1 business days.
Swift Capital takes into account business cash flow to review applicants instead of relying solely on credit history to make a decision. If your business is in need of extra funds fast this is an option to consider because of the flexible eligibility requirements and easy application process. Here we’ll dive into the details of this loan and compare it to two other small business loan products.
Swift Capital Business Funding at a Glance
To qualify for Swift Capital you must have at least a 500 credit score. In addition, your business must be at least a year old with a minimum of $100,000 in annual revenue. According to Swift Capital, 4 out of 5 applicants are approved for funding so you have a good chance of borrowing money if you meet the basic requirements.
Loan terms are available for 3 to 12 months. Rates at Swift Capital start at 9.90% and are charged as a one-time fixed fee and applied to the funding advance. The lowest rate is only offered to businesses with superior credit. Once the loan is funded, payments are taken from your business checking account daily. Some businesses may qualify for a weekly payment plan. You can speak with an agent during the application process to discuss your payment options.
Swift Capital funding is backed by a Best Price Guarantee. If you receive a better offer with comparable terms from another lender before the loan is funded, Swift Capital will beat the other offer or pay you $500.
Fees and Gotchas
There’s no loan application fee, but there’s an origination fee of 0.00% - 2.50% that’s deducted from the loan amount before it’s deposited into your account. You won’t be penalized with a fee if you prepay the loan. However, Swift Capital also charges a minimum 9.9% premium fee upfront. So, prepaying the loan early may not negate the interest accruing during the loan.
Swift Capital promises access to $10,000 within an hour, but that’s after you turn in all of your paperwork including bank statements. Make sure you get your information in fast if you need money right away. The application process requires a hard pull. Consider how that will impact your credit score before requesting a quote.
Pros and Cons
So what are the pros and cons of Swift Capital funding?
If your business brings in steady income you can qualify even with a below average credit score. And as mentioned you can get both a small and large sum of money within a few days.
Payments are drafted from your business account each day, which is good for business cash flow according to Swift Capital. And although Swift Capital charges a closing fee of 2.5%, its fees are less than some of the other business loans on the market (we’ll discuss that later in this post).
The main downside of Swift Capital is its rate structure. There is an origination fee. While it’s great there isn’t a pre-payment penalty, you still get hit with a fee. And although the starting rate (9.90%) is reasonable, it’s quite possible that your rate will be much higher than that if you only meet the minimum eligibility requirements.
Alternatives to Swift Capital Funding
Swift Capital funding has comparable terms to other small business loan products offered by Accion and Lending Club. But overall Swift Capital may charge you less in fees and offer quicker access to cash.
Accion will offer existing businesses between $500 and $50,000. Interest rates start at 8.99% with loan terms available from 6 to 60 months. Closing costs are between 3% to 5%. There’s also a $135 processing fee.
To qualify for an Accion loan you must have a credit score of 525 or above and have enough cash flow to make payments. Once you apply for an Accion loan you’ll receive a call to move forward with the application in 2 to 3 days. So you’ll likely get faster cash if you borrow from Swift Capital.
Lending Club offers rates as low as 9.77% APR on its business loans if you have excellent credit. You can borrow up to $300,000 for 12 to 60 months. The origination fee is 1.99% - 8.99%. Like Swift Capital your money from Lending Club can be deposited into your bank within a few days. In order to qualify for Lending Club your business must be at least two years old and have annual sales above $75,000.
Who Will Benefit Most from a Swift Capital Loan?
You’ll benefit from Swift Capital if you’re running a new business and you need a small amount of cash quickly. If your business is more mature, you have higher monthly sales and excellent credit, Lending Club is worth checking out or a variety of other loan providers.