PayPal Will Be Offering More Loans With Swift Financial Buy

Paypal To Acquire Swift Financial To Help Strengthen Small Business Lending

The global payment processing company Paypal recently announced that they plan to acquire Swift Financial, a company which offers owners of small businesses working capital to grow their companies. The terms of this deal have not been disclosed to the public. However, it is known that with Paypal acquiring Swift Financial, they will have more tools in their arsenal to expand on their already growing Working Capital product.

Who Is Paypal?

Paypal is an American company that operates worldwide as an online payment processing system. It supports the transfer of money between account holders and serves as a way to make and receive payments for businesses electronically. Paypal is one of the world’s largest online payment processing companies and was established in 1998. They are used primarily as a payment processor for auction sites, online vendors and other commercial uses.

Bolster Paypal’s Working Capital Product

This new move for Paypal is supposed to help grow a part of their company which has seen a lot more competition over the last few years. They had first launched Working Capital for businesses back in the year 2013. Since they first launched it, other companies such as Kabbage and Square began to emerge offering their own credit lines similar to what Paypal offers to owners of small businesses.

Knowing the full extent of the competition, Paypal decided to gain control of Swift in order to add their their own underwriting abilities and be able to expand the amount of data they can access in order to figure out the creditworthiness of their customers. This, in turn, will grow the amount of capital they have available for their small business customers.

Paypal understands and knows the value of adding Swift to their arsenal. Their talent and technology platform will just further strengthen Paypal’s overall business and merchant value proposition. Combining Swift with Paypal will just further grow their existing relationship. It will also further enable Paypal the ability to serve their small business customers as well as enhance their underwriting capabilities in order to offer access to affordable financing solutions for more businesses than before to help them thrive and grow.

Swift Financial was originally founded in 2006. Since then, they have provided funding to over twenty-thousand small businesses. This is really great for a start-up and proves they are going to make a good fit with the already established Paypal. Combining both Swift with Paypal will easily give them massive distribution and the chance to reach more small businesses to work with and help.

During Paypal’s announcement about acquiring Swift, they had said they have already provided more than $3 billion dollars in funding to over 115,000 small businesses already since they launched their Working Capital product. The combining of Swift and Paypal is expected to be completed by the end of the year. Neither company plans to disclose any of the pricing or terms of the deal at this time. However, Paypal didn’t file an 8-K. This would have had to be filed if the transaction had a specific material amount. Additionally, it didn’t provide any changes in financial guidance. This shows that the transactions seems to be one that is of a non-material event.

Summary Of Paypal’s Acquisition Of Swift

•Paypal has began to acquire Swift Financial for an amount that is undisclosed.

•Swift is a company which offers online lending services to small businesses based on creditworthiness and other conditions that Swift deems important for decision-making.

•The deal for Paypal to acquire Swift Financial is being done in an effort to grow their already successful Working Capital Product in order to bolster a more strategic plan to bring in small business clients.

Senate to Approve Student Entrepreneur Fund That Could Turn Delaware into Tech Hub

Delaware legislators are considering passing a Student Entrepreneur Fund bill that might encourage young people to start technology-based companies in the state. Delaware Senate Bill 112 would call for the spending of $2 million per year over the next three year. Funds would come from the state’s $10 million Delaware Strategic Fund.

Why Senators Feel the Student Entrepreneur Fund Needs Passing

Bill sponsor Senator Harris B. McDowell of Dover, Delaware, hopes that more young people would be encouraged to stay in the state. Many people have left the state recently because of the closing of two auto plants and the drastic downsizing of Dupont after their merger with Dow.

Intentions of the Student Entrepreneur Fund

In order to qualify for a grant from the fund, participants must first graduate from a Delaware college. Immigrants attending college in Delaware would be eligible to receive funding. Secondly, funds could be allocated to create new innovative technology companies in the state attracting younger talent. McDowell and other supporters of the bill also hope it will attract global entrepreneurs to the state who would work with the colleges located there. Finally, it is the intent of the bill to support those starting new companies by crowdsourcing with the local colleges.

Hopeful Outcomes

Delaware’s population is getting much older after two decades of the population getting younger. It is hoped that this fund may encourage young people to come to the state, go to college, start businesses and raise their family there. That way, the state’s tax revenue would naturally rise to support the older population.

What Startups would Receive Student Entrepreneur Funding?

Any startup receiving funding must promise to stay in the state for 10 years if they are successful. Over 90 percent of new startups fail, so many fear that this fund may be a waste of precious tax dollars. Others wonder if the fund is large enough since New York and other neighboring states have created similar programs.

Grant Approval Process

All applications for the grants would have to be approved by a committee before the idea receives any money. Serving on the committee will be the Delaware Secretary of Education Doctor Susan Bunting or her designee, Delaware Secretary of State Jeffrey Bullock, two representatives from the University of Delaware, a representative from Delaware State University and other interested parties. The university representatives would be appointed by their institution’s presidents for their expertise in technology and entrepreneurship. It would also be the job of this committee to develop the platform so that students and startups with potential to add commercialization, job creation and economic growth would naturally rise to the top.

Arguments Against the Student Entrepreneur Fund

Others argue that this bill does not go far enough to change Delaware’s economy. They argue that the first step is for the Delaware Economic Development Office to develop detailed plans that are more than five years long. They also stress that laws giving schools the flexibility and funding to prepare students at an early age must be passed. Furthermore, they suggest that the most advanced community policing programs must be put in place so that Delaware become a safer state. They also believe that the state’s infrastructure must be upgraded. Until these things happen, opponents feel that the governor should not sign this bill.

The Student Entrepreneur Fund also called Delaware Senate Bill 112 would provide funding to startups and young people wanting to start businesses in the state. The idea is being proposed because Delaware has seen a recent decline in young people choosing to stay in the state. A committee would be appointed to build a platform allowing the best ideas to rise to the top. Successful new startups receiving funding would have to promise to stay in the state for 10 years. Opponents argue that their are many better ways to spend taxpayer’s funds.