Froda, Lunar & Visa launch card-based loan solution for SMBs in Denmark

By Gloria Methri

Froda has announced the launch of its card-based embedded lending solution in Denmark in partnership with Lunar and Visa. The launch follows a successful test period, with the goal to make it faster and cheaper for Danish small businesses to access financing and secure the necessary capital to drive growth.

Small and medium-sized enterprises (SMEs) reportedly make up 99% of all Danish businesses and play a vital role in Denmark’s economy. However, SMEs often face obstacles when in need of financing, which hinders their growth potential.

To address this, the Swedish FinTech company Froda, in collaboration with Visa, has developed card-based embedded lending. The new loan solution uses card rails for payouts and repayments and is offered as a white-label product through Froda Embedded to partners that issue Visa business cards.

“It started with an idea and a sketch on paper more than a year ago, and now it has become a reality thanks to our partnership with Visa and Lunar. We have experienced significant demand for the solution among Danish entrepreneurs during the test period, making Denmark a natural next step on our journey,” said Olle Lundin, co-founder, and CEO of Froda.

The process is fully digitized and by using Visa cards for payouts and repayments, the entire loan process can be shortened from the typical two months to a few minutes. This breakthrough in the market ensures both speed and efficiency for small businesses when they need financing.

“We are constantly working to find new, innovative ways to utilize the card infrastructure, including through strong partnerships. In collaboration with Froda and Lunar, we can digitize the entire loan process and ensure a seamless and fast process for the benefit of small businesses,” said Philip Konopik, Regional Managing Director at Visa in Nordics, and Baltics.

“Lunar will be the first to launch an entirely new type of financing for small businesses in Denmark. It is easy to apply through our app, and you receive a non-binding offer within a few minutes. Additionally, we offer an attractive price guarantee, making our product extremely competitive and supporting our goal of building the best everyday bank in the Nordic region, especially for small businesses,” said Anne Marie Kindberg, Chief Revenue Officer of Lunar Group.

The product will be available to all Lunar customers in Denmark from June 20. The partnership with Visa and Froda aims to increase financing options, particularly for smaller businesses.