Froda & Lunar expand embedded SME lending partnership to Sweden

By Gloria Methri

Nordic FinTech Froda and Lunar, the digital challenger bank, have announced the expansion of their partnership into Sweden. This builds upon their successful launch in Denmark in 2023, where Froda’s embedded SME lending solution was introduced to Lunar’s customers. Now, Swedish customers will gain access to and benefit from the same innovative lending solution.

Sweden continues to be a key player in the EU’s innovation landscape, ranking as the second-most innovative country. However, small businesses, which represent over 50% of Sweden’s GDP, face mounting challenges, particularly in accessing financing. In 2024, over 10,000 limited liability companies filed for bankruptcy, marking the highest rate in a decade. The changing economic climate and difficulties in obtaining loans from traditional banks make it even harder for small businesses to realise their ideas, which in turn is slowing down Sweden’s growth and competitiveness.

“Small businesses are the driving force behind Sweden’s economy and innovation. Without access to capital, we risk losing crucial momentum. This partnership reflects our shared commitment to empowering small businesses by blending cutting-edge FinTech innovation with the digital banking solutions of tomorrow,” said Olle Lundin, CEO of Froda.

With Froda’s Embedded Lending platform and Visa’s global card infrastructure, Lunar’s Swedish customers can now access quick and flexible business loans directly through the Lunar app. Funds are disbursed in seconds, and repayments are automatically processed via card transactions. The entire process is fully digital, removing the traditional barriers of long wait times and complex requirements.

“Beyond offering affordable bank accounts and great service, loans are the most requested product among our business customers. Together with Froda, we aim to make it easier for small businesses to grow, and we are excited to expand our collaboration in Sweden,” said Mats Persson Bergius, Chief Commercial Officer at Lunar.

The embedded lending offering will be available to Lunar’s Swedish customers starting in February 2025. With this partnership, Froda and Lunar set a new benchmark for business financing in Sweden – fast, transparent, and fair, giving small businesses the tools to thrive on their terms.