Fintech Froda has partnered with Visa to develop an entirely new business lending solution. Initially, Froda and Visa are partnering with Nordic digital bank Lunar. Under the partnership, Lunar customers have access to business loans through Froda’s proprietary integrated lending platform, which offers payments and repayments directly via Visa cards. Visa’s presence in more than 200 countries and territories provides a consistent experience regardless of market, making the product globally scalable.

I am thrilled to announce our collaboration with Visa and Lunar to bring a new level of convenience and efficiency to the world of business lending for SMEs. Our goal was to create a new ecosystem within embedded lending that would offer entrepreneurs easy access to financing and instant payouts. With the support of Visa, we are able to offer this innovative solution to both neo-banks and incumbent banks across multiple markets. We couldn’t be more excited about this partnership and look forward to seeing this new ecosystem grow.

Olle Lundin, CEO at Froda.

At a time when the economy is facing headwinds, access to funding has become even more important for startups and small businesses looking to invest for the future. To best support SMEs, it is important to find new ways to allocate SME finance efficiently. The solution aims to remove barriers by allowing loan repayments and disbursements to be made directly through payment cards. Customers repay loans through recurring card payments without the need to track and manage monthly bills.

At Visa, we are constantly seeking new innovative ways to leverage the use of card infrastructure. The solution Froda has developed offers something new to the embedded lending ecosystem. We are very excited to be a part of this and can’t wait to see the impact it will have on small business lending.

Philip Konopik, Regional Managing Director Nordics & Baltics at Visa.

Utilizing Visa’s infrastructure, the solution provides a consistent experience for customers in any market, without the need to adapt local payments and direct debit processes. Partnering with card issuers will provide a source of transaction data to improve credit scores and provide customers with accurate pre-rated available credit.

It’s a fantastic opportunity to be a part of this collaboration as it allows us to offer our customers a fully digital experience with card enrollment as part of the loan application process. This eliminates the need for a separate enrollment for direct debit solutions or collecting details for invoicing. Additionally, the ability to make instant loan payouts through push payments ensures that our customers can access the funding they need quickly and efficiently.

Mats Persson Bergius, General Manager, Sweden, at Lunar.

The integrated lending solution will be available to Lunar customers in Q2 2023, with the option to allow more SMB card issuers to participate.