Swift Financial Secures $20M round

The Deal.com, February 20, 2008 - Swift Financial, a direct financial services company targeting small businesses, announced that it has secured $20 million in venture capital financing.

Permit Capital LLC, a West Conshohocken, Pa.-based investment firm, led the round, which also included Sutter Hill Ventures, Village Ventures and Marshall & Ilsley Corp.

Wilmington, Del.-based Swift Financial targets the "micro small business segment," or businesses with annual revenues of $2 million or less, across the nation.

"We are extremely pleased with the reception we've gotten in the market and the reaction from our customers," said Harycki. "Our offering is a big win for small-business owners."

Swift Financial received $6.5 million in its first round of funding. Sutter, Village and M&I were part of the original round. Total investment now comes to $26.6 million. Sutter, Village and Permit own a combined majority stake in the bank, Harycki said.

"There are over 20 million small-business owners in the U.S. who spend $5 trillion a year on their businesses, yet they receive so little from their bankers," Harycki said.

Small businesses, which include restaurant owners, day care centers and neighborhood contractors, also create 75% of new jobs, Harycki said. But big banks often do not meet their needs. Small-business customers are typically shifted through a large bank's various divisions without anyone's focus. Small-business owners often need a loan within days but must wait weeks for the funds. And big banks will often hit small business customers with "nuisance fees."

"Lending processes aren't designed to meet the needs of small business," Harycki said.

Swift opened its doors in May 2007. Each customer receives a personal-relationship manager who will answer calls. It can approve a loan in as little as 15 minutes and provides free checking accounts with no minimum balance requirements or transaction fees. Customers also receive a free check scanner that allows them to deposit checks remotely. Because of its relationship with M&I Bank FSB, customer deposits are FDIC insured.





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