647-348-4995
- November 10, 2024
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Mohammed Saqib
For entrepeneurs and small to mid-sized businesses, obtaining financing to grow and expand can be one of the biggest challenges they face. Traditional banks typically require a high credit score and collateral against the loan, which small businesses might not be able to provide. This is where alternative lenders like Swoop Funding and SharpShooter Funding step in. Both these platforms specialize in providing financing solutions to small businesses in Canada. Let’s start with this quick comparison table to help you understand the differences:
| Feature | Swoop Funding | SharpShooter Funding |
|---|---|---|
| Business Model | Marketplace (offers multiple lenders and financing options) | Direct lender (offers loans directly, no comparison) |
| Loan Types | Traditional loans, grants, equity investments, equipment/asset-based loans | Short-term loans, lines of credit |
| Target Audience | Small to medium-sized businesses with varied credit backgrounds | Canadian small businesses, especially those with poor credit |
| Loan Amounts | $5,000 to 1mm+ | $1,000 – $300,000 |
| Fee Structure | No platform fee; Swoop receives a commission from lenders upon successful funding | Higher fees and interest rates, tailored for credit-challenged businesses |
| Interest Rates | Varies by lender (option to compare rates) | Higher rates than conventional banks due to risk-based pricing |
| Transparency | High; detailed loan information and fee breakdown for each lender | Moderate; interest rates and fees are disclosed, but fewer options for comparison |
| Application Process | Single application to access multiple lender offers | Simple, quick application with fast response |
| Customer Reviews | Google: 4.9/5 (8 reviews), TrustPilot: 5/5 (370+ reviews) | Google: 4.3/5 (60 reviews); no TrustPilot reviews |
| Best For | Businesses looking to compare financing options and save on costs | Businesses with poor credit that need fast, straightforward financing solutions |
| Location | Toronto, Ontario | Calgary, Alberta |
While both Swoop Funding and SharpShooter Funding serve similar purposes, they operate in distinct ways and cater to different types of businesses. Each platform has its strengths and limitations, and understanding these can be crucial to making an informed decision that aligns with your business’s financial health and objectives.
In this article, we’ll take a comprehensive look at both Swoop Funding and SharpShooter Funding, diving into the specifics of their services, the fees they charge, and the overall experience as reported by customers. We’ll also explore customer feedback from review sites like TrustPilot and Google Reviews to give you an honest perspective on what each broker offers in terms of value, transparency, and support. By the end of this review, you’ll have a clear picture of which loan broker might be the best fit for your business needs.
Swoop Funding
Official Name: Swoop Funding
Website: https://swoopfunding.com/ca/
Location: Toronto, Canada
Phone Number: 1 647-946-3001
Email: canada@swoopfunding.com
Google Reviews: 4.9/5 stars (8 reviews)
Trustpilot: 5/5 stars (370+ reviews)
Swoop Funding serves as a one-stop platform for businesses seeking a variety of financing options. From traditional loans and equity investment opportunities to grants, Swoop Funding connects businesses with a broad range of lenders. The platform’s services are similiar to what Loans Canada offers. To learn more about Loans Canada, read our full review here.
Swoop Funding specializes in providing equipment and asset-based loans to small businesses. Through the Swoop Funding platform, entrepreneurs and business representatives can apply for asset finance.
Fee Structure
One positive feature of Swoop Funding is that it discloses its fees clearly. The service is available for free, and businesses can use it to compare loan offers without paying a fee. Swoop usually only receives a commission or referral fee from the lenders when the businesses have managed to access the necessary funds. This fee structure can be beneficial, as it means that business owners do not have to think about paying for the platform for the ability to access financing solutions; instead, they can solely concentrate on pursuing the best financing terms.
However, as Swoop Funding is essentially a marketplace, each lender can have its own terms and fees. These may comprise charges such as origination fees, charges for processing as well as charges for early repayment. Swoop provides details for any fees that are attached to each lender, so businesses are not only able to compare loan terms but also the actual cost of financing.
Customer Reviews
Swoop Funding has gathered several positive reviews on TrustPilot. Customers mention that the platform is really simple and transparent. Swoop’s customer support service is also satisfying and quick to respond; however, some users complain that some lenders on the platform take a bit longer to respond. This drawback for businesses in urgent need of cash flow, but overall, Swoop Funding’s reputation for transparency and customer service holds strong.
SharpShooter Funding
Official Name: SharpShooter Funding
Website: https://sharpshooterfunding.ca/
Headquarters: Toronto, Ontario, Canada
Phone Number: +1 855-742-7774
Email: funds@ssfunds.ca
Google Reviews: 4.3/5 stars (60 reviews)
SharpShooter Funding specializes in providing Canadian businesses with short-term loans and lines of credit. SharpShooter Funding focuses on offering loans to small businesses with poor credit. They provide flexible and customized credit facilities tailored to small business needs. The loan amount falls between $1,000 and $300,000. Unlike Swoop, SharpShooter Funding operates more like a direct lender than a marketplace, which means businesses aren’t comparing various loan options.
Fee Structure
The interest rates and the repayment charges of SharpShooter Funding are clearly stated; however, they are higher than any other conventional bank. This is a general feature of lending solutions made for lower credit rating businesses since higher interest rates enable risk mitigation when lending. Having access to quick and short-term funding is useful, but businesses need to consider how much this is going to affect them if the repayments are large.
Customer Reviews
SharpShooter Funding does not have any reviews on TrustPilot but has several positive reviews from customers on Google. Most of the positive feedback is from credit-challenged businesses that were glad that SharpShooter approved their loans even when other financial institutions turned them down. These users note that the application and disbursement of the loans was quick which allowed them to meet the needs of their business easily. On the other hand, some customers said that the high interest rates and fees put them off.
Comparing Swoop Funding and SharpShooter Funding
Ease of Use and Transparency
Swoop Funding provides a transparent marketplace where businesses can compare multiple financing options in one place. This feature is valuable for businesses that want to shop around for the best rates and terms without having to apply to each lender individually. The platform’s user-friendly interface and detailed loan information enhance the transparency of the loan selection process.
SharpShooter Funding’s process is simpler. Businesses receive a loan offer tailored to their application but do not have the ability to compare it with other financing options within the platform. This may be suitable for businesses with urgent funding needs.
Loan Accessibility and Application Process
Swoop Funding is designed for businesses across various credit backgrounds. The platform provides flexibility, allowing businesses to choose from different types of financing, including loans, grants, and equity investments.
SharpShooter Funding, on the other hand, targets organizations that may not be able to obtain funding through conventional financing methods because of their credit status. It is easy to apply for a loan, and they respond quickly, which makes it suitable for businesses that need cash urgently.
Overall Cost and Flexibility
The marketplace model of Swoop Funding is less expensive since firms have a variety of loans to choose from and compare the rates. SharpShooter Funding, as easy to use as it is, often demands higher fees and interest for businesses with poor credit. That is why this model is most suitable for those for whom the speed and availability of financing are more important than its low cost.
Final Thoughts
Both Swoop Funding and SharpShooter Funding serve distinct needs within the Canadian small business financing landscape. Choosing between Swoop Funding and SharpShooter Funding will eventually depend on the unique needs of the borrower or their business.
If you have a business established in Manitoba, Saskatchewan, or Alberta, we have written separate articles and reviewed the best options for business loans in those provinces. We recommend reading the articles to better understand which lender might be most suitable for your unique business needs.
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Saqib is a Canadian business writer that holds a Master’s degree from Wilfrid Laurier University in Ottawa. He brings a strong foundation in business, accounting and finance to his work. He began his career three years ago as an investment analyst at a well-known financial firm, focusing on analyzing publicly-listed companies. Saqib employs fundamental analysis as a core part of his approach and has been featured in publications like Seeking Alpha, InvestorPlace, and Yahoo! Finance.
