NimbleFins' Swoop Business Loan Review

NimbleFins' Swoop Business Loan Review

Swoop is a lending broker that specialises in loans for small businesses. It partners with lenders to offer a wide range of loans and it has an amazing 4.7 customer rating on Trustpilot. But is their broker service right for your business? We take a closer look.

Good for

  • 4.7 customer rating on Trustpilot
  • Wide range of business loans available
  • Simple and quick application process
  • 30 second online eligibility checker
  • Responsive customer service phone line

Bad for

  • Like any broker, doesn’t cover the whole market
  • May take longer to receive funding than applying directly
  • Won’t develop a relationship directly with the lender

Editor's Rating

4.5/5.0

In This Review

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  • Borrow from £1,000 to £200,000 over 12 months
  • Repay early with no fees
  • Decisions in 1 working day
  • Help from a dedicated account manager

Swoop overall review

We’re impressed by Swoop’s easy to use and clear website. Because they’re a broker, you’ll get access to exclusive deals from some of the biggest and best lending companies. They offer a wealth of lending options, from simple business loans to commercial mortgages and equity finance.

A Swoop customer service assistant will help you if you need some advice on the best type of business loan for your circumstances. The website also has a great knowledge hub where you’ll find a huge range of information about the different types of business loans available.

Who they are

Swoop is a lending broker that was set up in 2018 to help small businesses get the funding they need to grow. Since then, they’ve leant to over £83,000 business and helped them raise a total of nearly £140 million.

They’ve also landed some major industry awards like the Open Banking Challenge 2018 and the Banking Competition Remedies Fund 2019.

How they work

Swoop is a broker, which means they will search the market on your behalf to try and get you the best deal on business finance. It can be a win win as they get commission, but also can save you money as they can negotiate discounts with lenders.

Once you’re registered, you can search thousands of products and find the best financial products and services for your business. You’ll be able to apply for business finance through the Swoop website, rather than approaching lenders directly.

You’ll get your own dashboard with a summary of any loan applications and up to date progress on any loan applications.

What is means to "Join Swoop"

You can join Swoop by registering your business. They will securely store your business data so that you can check back at any time and apply for business finance. You can access any existing applications through your personalised dashboard.

You’ll be able to use this dashboard to access Swoop’s smart matching technology and sort through 1000s of products and match them to your business.

How Swoop makes money

Swoop receives commission from most of the lenders they feature. That means they either receive a flat fee or receive a percentage of the total loan amount agreed.

It won’t make any difference to the price you pay for borrowing, as the lender pays Swoop separately to arrangements they make with you.

Swoop aims to display clear information on all its products, so you’ll be clear about any fees before you enter into an agreement.

Products they offer

Swoop partners with lenders that offer a huge range of business finance products. Here are just some of the options they offer:

Simple business loan

Swoop offers comparisons on simple business loans for between £1,000 to £500,000. The amount you can borrow depends on the size and credit record of your business and whether the loan is unsecured. Interest rates also vary significantly between lenders.

A simple business loan works a bit like a personal loan where your business borrows cash and repays the loan, with interest added, over an agreed period. Small business loans are usually one of the cheapest ways to raise business finance. They’re useful for all sorts of purposes including buying assets, helping with cash-flow issues and paying for expanding your business.

If you want more information about how simple business loans work, then take a look at our detailed guide.

Recovery loan

Swoop works with partners that offer recovery loans to businesses affected by the Covid 19 pandemic. These loans are government-backed so are subject to some extra eligibility criteria.

If your business is a UK trading company that’s been impacted by the Covid 19 pandemic and you’ve been trading for over 2 years, then you may be eligible for a loan of up to £2 million. The scheme is only open until 30 June 2022.

If you want more information about how the government recovery loan scheme works, then take a look at our detailed guide.

Invoice finance

Swoop works with lenders to offer invoice finance to businesses that have a minimum of £30,000 annual turnover. Swoop’s lending partners can provide lending of between 75% to 95% of total outstanding invoice value.

Invoice finance is a type of short term secured business loan where the lender agrees to pay your business a cash advance based on the value of your unpaid customer invoices (invoice book). It’s often possible to raise 75- 90% of the value of your invoice book. You’ll receive payment from the lending company, usually within 48 hours of submitting your invoice. You’ll usually retain control of your sales ledger and are still responsible for chasing your customers for payment.

Lenders typically charge invoice financing fees of between 1.75% to 3.5% of your total outstanding invoices. The exact level of fees varies depending on the size and risk profile of your business and the type of invoice financing.

If you want more information about how invoice finance works, then take a look at our detailed guide.

Asset finance

Swoop also offers comparisons on the best asset finance deals for your business. Asset finance is great if you need to rent or gradually buy equipment for your business. You can also apply for asset refinancing, where you release cash into your business by securing a loan against existing assets.

The amount of asset finance you can raise is based on your circumstances and the value of the asset offered for security. Rates on traditional asset finance vary between 3% if you’ve got great credit to 50% if you have poor credit. Interest rates on asset refinance can vary between 2% to 15% depending on the type of assets and your credit history.

If you want more information about how asset finance works, then take a look at our detailed guide.

Merchant cash advance

Swoop works with lenders to find the best deals on merchant cash advances for your business. Merchant cash advances are a type of short term flexible finance for businesses with a high volume of customer card payments. Providers advance a lump sum that is repaid with future customer card payments.

Providers sometimes consider businesses with limited credit history and few assets, so a merchant cash advance can be a great option if you can’t find business finance elsewhere.

If you want more information about how merchant cash advances work, then take a look at our detailed guide

Commercial mortgage

Whether you’re a commercial landlord or buying your own business premises, Swoop can search its business partners to help find a commercial mortgage for your business.

Interest rates and other costs vary from 2% to 12%, with traditional lenders generally cheaper than niche lenders. If you are considering an unusual purchase or have complicated requirements then a broker can search the market and help you find the most competitive solutions for your circumstances.

If you want more information about how commercial mortgages work, then take a look at our detailed guide.

Equity finance

Swoop can even help your business negotiate the tricky waters of equity finance. It uses smart matching to match your business with suitable investors, comparing a huge network of over 200 Venture Capital funds, Angel Networks, Family offices and Angel Investors.

Equity finance means that you issue shares and sell part of your business in exchange for finance. The amount you raise depends on how much your business is worth and how much equity you want to sell.

There are lots of different types of equity finance, so finding the right fit for your business is important. Partnering with an Angel Investor, for example, means you’ll gain a business partner who has a book full of business contacts, as well as great business knowledge and expertise.

If you want more information about how equity finance works, then take a look at our detailed guide.

Loan amountKey featuresSuitable for
Simple business loan£1,000 to £500,000
  • Rates vary depending on your circumstances 
  • Secured loans usually offer larger sum
Any type of business use
Recovery loanUp to a maximum of £2 million
  • Rates vary depending on your circumstances
  • Only available up to 30 June 2022
Businesses impacted by Covid 19
Invoice financeBorrow up to 95% of outstanding invoice balance.Invoice financing fees of between 1.75% to 3.5% of your total outstanding invoicesShort term borrowing to release cash flow into the business
Asset financeBased on asset valueRates vary between 2% to 15% depending on the assets.Purchasing or leasing business assets
Merchant cash advance£5,000 to £25 millionTypical factor rates vary from 7p to 35p per £1 you borrow.Short term borrowing to help with cash flow
Commercial mortgageBased on loan to value ratio
  • Rates vary between 2% to 12% 
  • Can take 2 to 6 months to arrange.
Businesses raising finance to purchase a property 
Equity financeN/ASeveral types of equity finance are available including angel investment and crowdfunding.Businesses raising large amounts of finance

Customer ratings

Swoop business loan ratings & customer reviews

Swoop ratings & customer reviews
Trustpilot customer service rating4.7 out of 5

How do existing customers rate Swoop business loans? To find out, we've searched through hundreds of online customer reviews. Here are some of those reviews:

Swoop Trustpilot

Swoop has earned an impressive 4.7 stars out of 5 at Trustpilot for its business loans. 92% of reviewers give Swoop an “Excellent” 5 star rating and only 4% of reviewers give Swoop a “Bad” one-star review. This rating is based on over 131 reviews.

Many of the positive comments highlight how helpful Swoop were in helping startup businesses get funding. Here are some of the recent reviews:

“I found Tom at Swoop funding by accident online. I made a great choice. Tom is approachable and professional. He has acquired funding as he said he would and made the process easy for me. He was there always to answer any questions and always called back if unable to answer the phone. I would definitely use the service again and will be recommending [it] to friends and colleagues. I will be happy to have his flyers on my business premises..” Feb 2022

“I had an exceptional experience with Seb, my Senior Funding Manager. He was prompt, efficient and very helpful. I cannot recommend enough Swoop Funding. Thanks, Seb.” Jan 2022

“Great Team and amazing service. Kerry has been more than helpful on our funding journey, introducing us to so many investors, angels and funds we would never have found without them. Always responsive to emails and proactive in sending us opportunities to get in front of investors. Can't recommend them enough!” Dec 2021

Pros and cons of using a broker for finding a loan

Here are the main pros and cons of using a broker to secure a business loan:

Pros

  • Save time - you’ll only need to apply once and they can search options for many lenders.
  • Access to more lenders and products - they can search and find a suitable product that may be difficult to find as an individual business
  • Provide advice - they may be able to provide advice on what type of loan is most suitable or if you are likely to be accepted, before you apply
  • Cost - they may get access to better deals than you would get as an individual business.
  • Great if you have unusual circumstances - the broker may know where to look for finance if you have a poor credit rating or are applying for an unusual loan.
  • Bank grade security - this means your personal data is protected from hackers and cyber-criminals.

Cons

  • May take longer to get finance - some lenders can provide funds within a few days if you apply directly.
  • You may have to pay a fee - this depends on your agreement with the broker and Swoop makes sure any fees are clear up front.
  • They may not find the best deal for you - sometimes better deals are available directly from lenders.

Alternatives if you don't want to use a broker

If you don’t want to use a broker, you can decide to apply for business finance directly with a lender. It’s also possible to ask for a quote from a broker and then shop around to check you’re getting a good deal.

Be careful you don’t apply for too many loans in a short period as this could affect your credit rating. Some lenders provide the option to carry out a soft credit check and will give you a rough quote, before you proceed with a full application.

Bottom Line

Swoop is a specialist broker, designed to help small businesses find and apply for the right business finance. We love the wide range of loans they offer. If you have unusual requirements or a poor credit history then they should be able to help you find a loan to suit your business.

We are impressed by their great customer feedback, with 4.7 out of 5 stars on Trustpilot. Many customers comment on their helpful and responsive customer services team.

How to contact Swoop

If you need to contact Swoop then they have a web chat function on their website. Their knowledge hub https://swoopfunding.com/knowledge-hub/ also provides useful information on each of the loans on offer to help you decide which type of loan is suitable for you.

Contact information for Swoop business loan

on_current="true" format="plain" General: 0203 514 3044 Funding enquiry: 0203 868 0364 Email: hello (at) swoopfunding.com Web chat: https://swoopfunding.com/contact-us/ [/plain]

Alice Guy

Alice Guy is a Suffolk-based business and personal finance writer. She trained with KPMG in London as a Chartered Accountant before working as a business analyst for Tesco Plc. Alice has personal experience surviving on a tight budget when she took time out to care for her young family. She loves to write about business finance, saving and investing—all the money stuff we were never taught at school.

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