PayPal Holdings announced that it is acquiring small-business lender Swift Financial to bolster its Working Capital business. Terms of the transaction were not disclosed.

PayPal Working Capital launched in 2013 and has provided access to more than $3 billion in funding to more than 115,000 small businesses, according to the company. Headquartered in Wilmington, Delaware, Swift Financial was established in 2006 with the idea that the right funding can unleash the full potential of a business. Since then, Swift has provided funding to thousands of growing companies in the U.S. through a unique combination of data, technology, and outstanding customer service, which has been recognized for excellence by J.D. Power.

"At PayPal, we believe that small businesses are the engine of the new global economy, and that small business owners should be able to access the capital they need, when they need it, based on the strength of their business," the company said in a statement. "We know and value Swift’s technology platform and people, and we believe their talent and capabilities will further strengthen our overall merchant value proposition. Building upon an existing commercial relationship, the acquisition of Swift Financial will enable us to better serve small businesses by enhancing our underwriting capabilities to provide access to affordable business financing solutions to more businesses to help them grow and thrive. While PayPal Working Capital provides access to capital based exclusively on proprietary insights, Swift’s technology will allow us to assess supplemental information to more fully understand the strength of a business and provide access to complementary financing products to meet the needs of small and mid-sized businesses. With these capabilities, Swift Financial will help accelerate our efforts to democratize financial services by enabling PayPal to further fill the small business funding gap."

Commenting on the announcement,  Ed Harycki, Founder and Chief Executive Officer of Swift Financial said:

"We founded Swift Financial in 2006 with the notion that small business owners should be able to access the funding they need to grow based on the strength of their business. We’ve made great strides to help entrepreneurs reach their potential, providing funding to over 20,000 businesses and being recognized for customer service excellence while delivering some of the best credit performance metrics in the industry. PayPal and Swift Financial have a common vision to help business owners achieve their dreams. Swift’s platform and expertise complement PayPal's ongoing efforts to make financial services more accessible, fair, and convenient. By joining forces, we’ll accelerate our efforts to provide expedient access to working capital that keeps America’s small businesses moving forward. We look forward to continued growth and success in fulfilling this mission as a part of the PayPal team."

The acquisition is expected to close later in the year, subject to certain closing conditions, including the expiration or early termination of the applicable pre-merger waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.