If your go-to funding option dries up, what would you do?
That was the situation facing our care home customer earlier this year as their original facility expired. On going back to their lender, they found that they had made the decision to pull out of the healthcare market.
This came as a severe blow to the customer who just about survived, despite turning away new residents throughout the COVID-19 pandemic in order to protect existing residents. Now, with the care home returning to full occupancy, profits were up – but this wasn’t sufficient for most lenders.
“After doing the right thing and surviving through the pandemic, it felt like a slap in the face to be told lenders wanted a full 12 months of data to confirm our profitability,” explained Swoop’s customer.
“Just as we felt we were bouncing back, it felt as though the rug was being pulled.”
Swoop’s Commercial Mortgage team took on the case. Ed Brown, Commercial Finance Manager at Swoop explains:
“From a business point of view, the only way was up: the home was making its way to full occupancy and becoming as profitable as it had ever been. For me, this was a business that had shown resilience, courage in taking the right actions to protect people, and I thought they deserved another chance to keep the doors open.”
Swoop worked closely with the customer’s accountant to demonstrate to lenders both the current and future trading position. Ed says:
“We were able to put together a strong case that gave us an opportunity with a lender. That lender bought into our customer as an operator and was willing to take a sympathetic view on recent performance rather than focus on the lean years of the pandemic. In the end, we secured a fixed rate loan to protect against future base rate increases with 12 months interest only and a 20 year repayment profile.”
Stuart Pawelczyk, Head of Commercial Mortgages at Swoop says that the customer is delighted with the outcome:
“This is a great example of a healthy business that will thrive now it has the correct funding deal in place. Once again, our Commercial Mortgage Team at Swoop have gone above and beyond to find solutions when other lenders say ‘no’.”
Andrea Reynolds, Founder and CEO at Swoop Funding
Three years after launching a digital platform in the UK that has enabled thousands of small and mid-sized enterprises (SMEs) to acquire millions of pounds of financing, Swoop Finance expanded into North America.
As its point of entry to the market, the company selected Toronto, the second-largest financial centre in North America, and Ontario, the second largest tech cluster in North America.
says Andrea Reynolds, Swoop’s founder and CEO. “Toronto has the highest volume of top-quality SMEs in Canada. From here, we can get to know the market and the nuances of the SME community not just in the city but elsewhere in Canada and the U.S.”
Working directly with SMEs, in partnership with banks, non-bank lenders, advisors, chambers of commerce and other participants in the financial sector, Swoop provides a digital platform where customers can compare thousands of financial products and services, from loans, cash advances and credit facilities to equity, mortgages, grants and tax credits.
Using Swoop’s platform, they can assess their financial requirements and then gain access to appropriate financing “in one fell swoop,” says Reynolds.
The company’s technology benefits SMEs and their advisors alike.
Reynolds continues. “Serving them digitally, we can provide better service while helping them to operate more efficiently.”
In Canada, Swoop’s research has determined that 350,000 SMEs already use digital services. With open banking on the horizon, that number will increase, presenting new opportunities for Swoop, says Reynolds.
Swoop also sees opportunities in introducing Canadian SMEs to non-bank lenders. In the UK, Swoop provides white-label solutions to banks and other financial institutions, enabling them to offer a wider range of online funding products and services such as grants, equity and alternative debt. NatWest, for example, used a white-label solution from Swoop to give SME customers access not only to NatWest Loans but also to grants tailored to their business needs. Within the first week, more than 2,000 SMEs engaged with the tool.
Swoop’s expansion into North America follows a similar foray in 2020 into Australia and gives the company a similar opportunity to provide SMEs with digital financial services.
With support from organizations in England and Canada, the company identified strategic partners within Toronto’s financial services community.
Reynolds says. “We also received a lot of help from London & Partners in the UK.”
Before opening a Toronto office, Reynolds and her team had already established partnerships with more than 30 lenders in Canada. As a member of the Mayor of London’s International Business Programme, she then met in person with more potential partners in the city during a North American Trade Mission in the Fall of 2021.
With a Canadian location, two Swoop employees had no trouble emigrating from the UK while still giving them access to U.S. markets. Swoop then added three employees, hired locally, to join the team.
“The government has created an operating environment to encourage tech companies to invest, so Ontario’s R&D tax environment is now regarded as the best in the world,” says Reynolds, who learned first-hand about the financial needs of spin-off companies as a consultant to McLaren F1 Applied Technologies. “As a result, the province’s tech talent pool is phenomenal.”
As an integrated hub for financial management and planning, Swoop not only helps SMEs locate appropriate financing, it also identifies ways to save money, helping them to achieve better financial health.
For example:
“Putting the right money at the right time into the hands of business owners as they go through each stage, whether it be growth or cash crunch, is our mission,” says Reynolds, “and nothing gives me more pleasure than to see our customers flourish as a result.”
she continues. “An important factor to growth for SMEs is access to financing, and that’s the opportunity that we’re here for.”
The Challenge
AreaWealth is a technology driven investment management platform that maximises efficiencies for advisers in managing their clients’ financial needs. The Australian fintech provides a secure all-in-one platform that integrates a vast array of tools and resources through which advisers can assess, identify, and initiate targeted solutions for their clients. With their business model proven, Areawealth was eager to pursue ambitious strategic objectives to further client growth as well as expand their product offerings. In order to do so Areawealth needed access to further equity capital yet was unsure of how to navigate the equity landscape successfully.
The Solution
Areawealth initiated an equity seed capital raise with Swoop and leveraged Swoop’s expertise and connections within the equity funding space. Initially, Swoop – led by our equity expert Tim Brown – assisted in the preparation of AreaWealth’s pitch deck and presentation. Following such, AreaWealth was introduced to First Pacific Capital who would become their strategic funding partner.
The Results
With Swoop working as an intermediary and advisor to AreaWealth and First Pacific Capital throughout the process, AreaWealth was able to secure a capital raise of $2 million dollars.
Client Testimonial
“Swoop has been instrumental in achieving our desired Seed round funding objective which was oversubscribed, through an introduction of a Strategic Funding Partner – First Pacific Capital Pty Ltd. Throughout this process Tim has been strategic, collaborative and supportive working directly with AreaWealth and First Pacific Capital.”
Dean Lupton, Chief Commercial Officer – Area Wealth Administration Services Pty Ltd
Hilary O’Dwyer who heads up Titian Consulting in Australia offers virtual CFO services to small businesses. As a small business owner, you need outside assistance with strategic planning; financial processes, cashflow management and forecasting, reporting and compliance. The same clients often have questions about securing funding for their business including working capital loans and capital raises. The challenge is to provide them with timely information and connect them to right funding suited to their business needs.
Hilary – “I had actually come across Swoop through an event organized by the Irish Australian Chamber of Commerce and thought Swoop’s product offering was fantastic. Some of my clients had been talking about financing and had been trying to access SME Government backed loans without much luck, that’s when I thought Swoop could help”
Swoop worked with Titian Consulting to assist 4 of their clients with their funding needs. The Swoop team was able to work with Hilary to understand the clients business needs and make recommendations for funding options tailored to the business’s requirements. Swoop was able to successfully assist all 4 clients with their debt applications to suitable funders and get speedy approval.
Advisor testimonial – “I have connected 4 of my clients with Swoop and all of them were successfully funded. All 4 had no backing from the big banks yet were able to take advantage of non-bank funding which shows how well Swoop works for businesses like these. This gives me confidence to refer more clients to Swoop for their funding needs”
The challenge
Having recently been appointed CFO at Concise Media, Mark Winkler had been working with the team for a number of months, exploring the different funding avenues available to the business. With Concise Media growing very quickly, the team wanted to ensure that they found a debt option that was right for the business. They had applied for CBILS previously but had been rejected due to the EU rule on state aid.
The solution
After being introduced to Swoop, Mark had a conversation with Mike and Sam from the Swoop team about the opportunities available to the business. Importantly, he received an update from Swoop regarding changes to the eligibility criteria for CBILS. Following this, Swoop were able to identify two or three parties that they felt might be suitable – in particular, they thought IWOCA would be a good match.
The results
Mark worked closely with Swoop to collate and present the information to IWOCA in the appropriate manner. This led to a call with IWOCA themselves followed by a proposal. Everything was wrapped up that day, and the money came through over the bank holiday weekend.
Client testimonial
“There were a number of elements which were important in this process, but primarily this was access to a broad range of lenders, and a deep level of expertise and genuine understanding of the debt products and the lenders’ requirements. With any debt products, there’s always the risk of downside circumstances so it’s important to have a team like Swoop’s who can share their perspective.
As we continue to grow and our requirements change, if the chance arises, I would absolutely work with Swoop again.”
Mark Winkler, CFO of Concise Media
Moi Moi Sauce needed security to grow with confidence. Swoop found the perfect accompaniment.
Founded by Arron Maddix, Moi Moi Sauce is a sustainable and environmentally friendly brand offering a selection of hot sauces to its customers. Alongside this, they have also created a pop-up restaurant business, with long term ambitions to turn this venture into an event catering company.
With customer sales increasing, Arron knew the next step was to invest more in the business, but needed some extra capital to achieve this.
Having met Neil Dillon, Swoop’s Head of Equity, on a Virgin Step Up course, Arron decided to solicit Swoop’s help in his search for funding. Working with David from the Swoop team, he explored a number of potential routes, and settled on an advance funding option via YouLend. This solution provided a Merchant Cash Advance of £12,000 for unexpected expenses, which in turn gave Moi Moi Sauce the extra security it needed for the business to grow.
Having secured the cash advance, the business was more cash flow stable. They will be moving to a new kitchen soon and scaling up in terms of production to a factory in Milton Keynes. With plans to create a sustainable recycling system connected to Moi Moi Sauce bottles, they are excited about the next steps in their business plan.
“Swoop is very good at managing your expectations, helping you to remain realistic about the funding opportunities available to you.”
“They provide support throughout the process so you don’t feel like you’re just attached to a capital fund company.”
https://moimoisauce.com
https://www.instagram.com/moimoisauce/
A highly innovative company discover a new route to funding vital staff through Swoop
Note Taking Express, part of Habitat Learn, began life as a directional microphone designed to help disabled and dyslexic students record lectures. Over the years, the company has grown and shifted to become a complete note-taking service available through institutional clients.
A highly innovative company, the business has completed four successful applications for Innovate UK grants within a year and there is a perennial challenge to raise funds to progress the development of software that uses AI and machine learning to extract useful information from spoken speech.
The company’s latest challenge, enhancing a video conferencing platform to include natural language processing for closed captioning and an automated interface for translation, required the addition of developers to the existing team.
Through Swoop, the company was able to identify and successfully apply for a loan of £180,000 with ArchOver.
The loan was awarded on the outcome of a grant application and successful completion of due diligence, which demonstrated the strong business case for the project.
Securing the loan has enabled Note Taking Express to employ three new developers, bringing their development team up to 20 staff.
The company is on track to deliver the improved platform in time for the beginning of term in September, enhancing the education experience for students across a range of disabilities.
“I was impressed by their level of due diligence, looking at the financials and stress testing our business case. It was good for us as a business to go through this process. Swoop guided us through the process in a highly professional manner, introducing us to a source of funding we had not considered before and ensured that we had a successful outcome for our application.”
The challenge
Presols offers long-term, high-quality and sustainable products and solutions for both business and retail segments. Aware of the shift in preferences and attitudes of the general public towards hygiene following the impact of COVID-19, and concerned about the major environmental impact of disposable masks, Presols sought to become a holistic provider of preventative hygiene products. This includes offering their customers high-quality washable, reusable and customisable facemasks.
Having partnered with manufacturers across each of their product lines, and now at the point of generating revenue and breaking-even, additional revenue was needed to take the business to its next stage of growth.
The solution
It was at this point that the team at Presols applied for Startup Funding having been connected to Virgin Startup by Swoop. The Swoop team also helped Presols assess their FX exposure and identify how they could be charged less FX fees for every inventory order made in dollars.
The results
Presols was able to use the funds to finance inventory purchase, enabling further growth for the business as the team continues to achieve great results like receiving Amazon’s Choice for one of their face mask collection.
Client testimonial
“We came across Swoop through a web search. The experience with Swoop has been fantastic. They really took the time to understand our business and continue to engage with us. This has helped us open new doors of funding and cost savings.”
https://www.linkedin.com/company/presolsuk/
https://www.facebook.com/presolsuk/
https://www.instagram.com/presolsuk/
The challenge
Sole Associates had been approached by a client, specialising in haulage, who was looking to finance a new vehicle and therefore wanted to review their funding options.
The solution
Having been previously connected with Swoop through a peer group made up of accountancy firms across the UK, Joe put the client in touch with Sarah from the Swoop team who was able to liaise directly with the client and provide a comprehensive overview of the options available to the business.
The results
Working together, Sarah and the client were able to come up with a solution which not only provided what was needed to finance the new vehicle, but would also replace existing finance with better terms.
Advisor testimonial
“Our partnership with Swoop not only enables us to talk more confidently with clients about commercial finance, but also to hand over to a team of experts who can speak to clients directly about their options and has access to a wide panel of lenders.
Sarah from the Swoop team was able to add value to our client’s search for funding by providing the best and most competitive solution which we otherwise wouldn’t have been aware of.”
Joe Sole, Managing Director of Sole Associates
https://www.soleassociates.co.uk/
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Disclaimer: Swoop Finance Ltd (Swoop) helps Canadian firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans or other finance products ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Swoop may receive a commission or finder’s fee for effecting such introductions. If you feel you have a complaint, please read our complaints section highlighted above and also contained within our terms and conditions.
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