Payments giant PayPal has agreed to acquire Swift Financial, a US-based provider of working capital to small businesses, for an undisclosed sum.

The agreement will allow PayPal to help unleash the potential of small businesses and expand the amount of data it can use to assess the creditworthiness of its customers.

The company, through its business financing product PayPal Working Capital, helps the small business owners to get access to the capital.

Founded in 2006, Swift Financial has provided funding to thousands of growing companies in the US.

Subject to regulatory approvals, the acquisition is expected to be finalised later in the year.

PayPal VP Darrell Esch said: “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.”