Don’t dream it, Swoop it!

We asked Swoop’s team to tell us what makes their service so effective. Here’s what they said, in four parts

1. Swoop supports businesses by showing them their options – but we don’t swamp our customers with irrelevant information.

Thanks to open banking technology, Swoop can find the products and services that customers need, giving them access to the best deals in the market and matching them with products they’re qualified for.

If a business needs a loan quickly, for example, our platform will show the amounts for which the customer is pre-approved through various funders. With more than a thousand lenders in the market, Swoop uses APIs to share data securely, showing customers which products are an ideal fit for them.

2. We help businesses get into shape. Swoop constantly pushes for the market to meet the needs of SMEs better. We’re our customers’ “unfair advantage” when it comes to negotiating a better deal.

We’ve also been encouraging our customers to know their credit score (see survey box opposite). This provides a snapshot of a business’s financial health and it is used by lenders and other companies to assess your suitability for a product.

Customers with a good credit score will get better deals on borrowing, energy and other financial products. swoopfunding.com/uk/businesscredit-scores/

According to Swoop’s research, the number of businesses checking their credit score in the past 12 months has leapt from 30% in 2021 to 88% in 2022.

For customers seeking equity investment, one of the equity team’s skills is helping to put pitch decks together that will encourage investors to buy part of the business. swoopfunding.com/uk/blog/thefive-things-that-make-a-businessinvestable

At Swoop, we are committed to helping our customers get the deal that’s right for them. We work hard to build long-term relationships with customers, who see us as their trusted partner in navigating the complex world of business finance.

3. Swoop genuinely cares about businesses and wants to empower SMEs to make the right financial decisions. But we’re a business too – and are transparent about how we earn our fees.

Swoop makes most of its money through referral fees. These are usually set by the lender.

Approaching the lender directly wouldn’t normally benefit the customer, as these fees would be paid to the agent who completed the deal. On top of that, customers would lose out on other deals in the market, the convenience of using one platform for all their funding and the speed of completing applications with Swoop’s technology.

Swoop’s aim is to give customers the right information and to help them connect with lenders without it costing them anything. For more information, see: swoopfunding.com/disclosure

4. Free tools, calculators, access to webinars/ events, free credit score checks, finding the best tailored solutions, etc.

Swoop has loads of resources to help businesses. These include:

• Take the Plunge, Swoop’s inspirational podcast that meets business founders and finds out what made them start their own business: Swoop Podcasts

• Free-to-attend webinars that cover hot topics, ranging from the Recovery Loan Scheme to government budget statements: Swoop Webinars

• Calculators to help you understand how much you can borrow, commercial mortgages, superdeductions and more:

Business loan calculator

Commercial mortgage calculator

Super-deduction calculator

• Our regular newsletter keeps customers up to speed with what’s happening in the market, gives tips on managing cashflow and highlights upcoming events and educational resources:

Subscribe to the newsletter

• We believe in educating our customers rather than acting as a gatekeeper. Our in-house experts regularly update our growing library of guides to the financial products available: Swoop blog Swoop knowledge hub

Funding for sole traders

If you are a sole trader wondering about your ability to raise funding, there are a number of borrowing options available to you. As well as unsecured business loans, sole traders can qualify for asset finance, a merchant cash advance or a revolving credit facilities. Although the word “limited” in “limited company” refers to the limited liability of directors for a company’s debts, making sole traders personally liable, they can still obtain commercial mortgages and business loans secured against property.

Raising equity for a business as a sole trader is more challenging as a founder cannot issue shares. Bobby Gleeson, Equity Funding Manager at Swoop, suggests that if a sole trader wishes to raise equity investment, then they will need to restructure as an LLP. Sole traders are usually funded through personal finance or a family and friends round.

Grants are a popular way for businesses to obtain funding, and there are still many that are available to sole traders. The Swoop grant finder tool is a useful place to check eligibility. Nanna Strøm Pedersen, Customer Success Manager at Swoop, advises that before applying for grants, sole traders should understand the purpose of the grant as it is often focused on a specific upcoming project, process improvement, or employment.

Sole traders should take time to understand the pros and cons of the various deal structures that are available to them, taking into account factors such as term length and flexibility of payments.To ensure the deal structure is right, you should have support from a reputable professional advisor or speak to the Swoop team.