Over 50 per cent of European small businesses (SMBs) struggle to gain external finance according to Statista; consequently, Froda, the Swedish fintech is expanding its partnership with Visa to scale embedded SMB lending across Europe.
The Froda Visa partnership will enable other fintechs, banks and neobanks to access Froda’s card-based embedded lending product to offer business loans to their customers. Services like these are crucial in the face of economic headwinds, as access to finance becomes even more challenging.
Together, the firms will focus on the adoption of a card-based embedded lending solution. Card-based lending operates similarly to a traditional business loan for SMBs, but offers increased speed and convenience. It is widely accessible across markets, thanks to the extensive global network of Visa’s card infrastructure. The product creates opportunities for other fintechs and banks to scale their businesses and expand their offerings.
Since the product was launched in June, card-based embedded lending is now available in Denmark via Lunar and in Germany via Kontist, a part of Ageras Group. The plan for the partnership is to embark on an ambitious expansion across Europe. The focus includes identifying new markets and partners. This expansion aligns with the companies’ commitment to providing accessible and innovative financial solutions to SMBs across Europe.
Expanding to new markets
“The extended partnership marks an important step in evolving the SMB landscape in Europe. Our joint efforts to promote the card-based embedded lending solution underline our commitment to fostering innovation for our clients and partners, so that they in turn can support the growth of small and medium-sized enterprises,” says Philip Konopik, regional managing director Nordics and Baltics at Visa.
“This is a milestone for us and for SMBs across Europe. We are excited about what we have achieved so far and are confident that our innovative approach to SMB lending will continue to make a positive impact. The expansion plans across Europe demonstrate our dedication to reaching more SMBs and driving economic empowerment through accessible financing solutions,” says Olle Lundin, CEO and co-founder of Froda.
“Since the product´s launch in June, we have successfully gone live with two partners in two markets and have seen a great interest within the industry. We look forward to expanding the product to additional markets, providing more entrepreneurs with access to finance,” says Stella Snickare, VP Froda Embedded.
