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Frequently Asked Questions
Froda is a Swedish credit market company based in Stockholm and was founded in 2015. By digitizing the process for business loans, we have made it possible to help more companies with customized financing based on their unique business idea and operations, on market-leading terms. Froda was founded with the ambition to be a responsible lender, with clarity and transparency regarding fees and terms, that treats its customers in an honest, fair, and professional manner.
Today, Froda is one of Sweden's fastest-growing fintech companies and has helped more than 50,000 companies grow. In addition to business loans, Froda offers savings accounts for individuals and embedded financing services through Froda Embedded. Froda is a credit institution that has a state deposit guarantee and is under the supervision of the Swedish Financial Supervisory Authority (FI). The founders are active in the company, and behind the company are many well-known investors, such as Karl-Johan Persson (HM), Nicklas Storåkers (Avanza), and Victor Jacobsson (Klarna).
Interest rates and terms are individual and based on your company's sales, history, and data. Read more about our process and assessment under pricing & terms. The interest is the only cost you will pay for the loan. There are never any extra costs such as set-up, invoice, or administrative fees. The cost of the loan is affected by the loan amount, the repayment period, and your company's turnover and creditworthiness.
To find out your price, just make a non-binding and free application. Should you get a lower price somewhere else, we will match that price through our lowest price guarantee. The guarantee otherwise requires comparable terms.
Froda offers business loans up to SEK 5,000,000. On average, we grant a loan amount that corresponds to one month's turnover in your company (provided that the business is well managed). It may happen that you get to borrow more or less than the amount you applied for. Read more about our prices and terms.
With Froda, you don't have to choose between smooth and affordable financing; you get both. Through new technology and data-driven analysis, we have developed a service that is easy to use and saves you time and money. Therefore, we can offer business loans with the same security and affordability as the major banks, but without all the time-consuming and complicated administration. You also never have to worry about hidden fees or commitment periods. The interest is the only cost you pay for the loan, and if you want to repay early, you can do so completely free of charge.
The guarantee means that Froda should always offer a price that is at least as low as our competitors. If you have received an offer for a loan at a lower price from another bank than what you have been offered at Froda in the last 30 days, we will always match that price. The guarantee otherwise requires comparable terms (e.g., amortization and collateral) and only covers applications that have been granted loans by Froda.
Business loans
Froda's business loan is an annuity loan where you can choose between daily and weekly amortization. Annuity means that each repayment is the same size, but the interest portion is higher at the beginning of the loan term, while the amortization portion is smaller. As you repay the loan, the interest portion for each repayment will decrease, while the amortization portion will increase instead. The repayment of your business loan then takes place automatically via direct debit during the loan period.
For loans over 1.5 million SEK, the loan is repaid monthly.
An annuity loan means that you pay the same amount at each payment occasion during the entire loan period. The interest portion of the repayment is higher at the beginning of the loan and then decreases over time, while the amortization itself increases.
Read more about annuity loans in our article Find your way in the interest rate jungle
When you increase the loan, your old loan is combined with the new loan. So, you won't have separate loans; instead, you'll get a new consolidated loan with updated terms.
Interest rates and terms are individual and based on your company's sales, history, and data. Read more about our process and assessment under pricing & terms. The interest is the only cost you will pay for the loan. There are never any extra costs such as set-up, invoice, or administrative fees. The cost of the loan is affected by the loan amount, the repayment period, and your company's turnover and creditworthiness.
To find out your price, just make a non-binding and free application. Should you get a lower price somewhere else, we will match that price through our lowest price guarantee. The guarantee otherwise requires comparable terms.
Froda has received extended support from the European Investment Fund (EIF) through the guarantee program for microfinance and social entrepreneurship within InvestEU. The program enables Froda to lend to small business owners to promote growth, equality, sustainable work, and social inclusion in Europe.
The EIF's micro-guarantee means that you can get a business loan from Froda with a discounted loan cost if you have a company with a maximum of 9 full-time employees and a turnover or balance sheet total of no more than 20 million. You can apply for loans up to SEK 565,000 to be covered by the micro-guarantee. The discount is automatically activated if your company meets the criteria for the guarantee.
Our business loan is an annuity loan where you can choose between daily and weekly amortization. Annuity means that each repayment is the same amount, but the interest portion is higher at the beginning of the loan term, while the amortization portion is smaller. As you repay the loan, the interest portion for each repayment will decrease, while the amortization portion will increase instead. The repayment of your business loan then takes place automatically via direct debit during the loan term.
Price & Terms
No, Froda has neither setup fees nor other hidden fees on its business loans. The interest rate is the only cost for the loan.
No, you can repay the loan without any extra cost after you have made your first repayment. If you repay the loan early, you only pay interest for the time you had the loan. The remaining interest is waived, and Froda never charges any interest rate differential compensation.
Froda has received extended support from the European Investment Fund (EIF) through the guarantee program for microfinance and social entrepreneurship within InvestEU. The program enables Froda to lend to small business owners to promote growth, equality, sustainable work, and social inclusion in Europe.
The EIF's micro-guarantee means that you can get a business loan from Froda with a discounted loan cost if you have a company with a maximum of 9 full-time employees and a turnover or balance sheet total of no more than 20 million. You can apply for loans up to SEK 565,000 to be covered by the micro-guarantee. The discount is automatically activated if your company meets the criteria for the guarantee.
Application
You can apply directly at froda.se. All you need to do is fill in your contact information, identify yourself with BankID, and adjust your loan according to your wishes. In most cases, we can automatically retrieve all the data we need and give you an answer to your application immediately.
We offer up to 60 months repayment period. You decide how long you want the repayment period to be when you apply, and how long a repayment period you can choose varies from company to company.
No, as a general rule, we do not use UC. Instead, we take a credit report from Creditsafe, which does not affect your company's credit rating.
However, for loan amounts exceeding 5 million SEK, we will also conduct a UC (credit report) on the company in addition to the credit information from Creditsafe.
If your application has been approved, your offer is valid for 30 days from the date you received it.
You can see the status of your application by logging in to My Pages. We always get back to you within 24 hours with an answer to your application, indicating whether it needs to be supplemented or not.
No, the application is not binding, and there is no cost to apply. Read more about our prices and terms.
No, the business loan has no fixed term. You can repay it in full whenever you want, free of charge.
Froda does not offer business loans to start a business, but may in some cases offer business loans to newly started businesses. In order to offer a business loan to a newly started business, the company needs to have started sales in order for us to make an assessment based on turnover.
Froda offers business loans up to SEK 5,000,000. On average, we grant a loan amount that corresponds to one month's turnover in your company (provided that the business is well managed). It may happen that you get to borrow more or less than the amount you applied for. Read more about our prices and terms.
No, you do not need to prepare anything to apply. All the information we need to process your application will be automatically collected when you apply.
The preliminary amount is based on your company's recent transaction history and current loans but does not consider other parameters. Unfortunately, we cannot guarantee that a loan will be approved until we have performed a credit assessment on a complete loan application.
Our assessment is based on a combination of transaction data and creditworthiness. You do not need to submit a business plan or other documentation to apply for a business loan with Froda. All the information we need is collected automatically. All you need to do is fill in your details, set your desired loan amount, and give us permission to view your company's transaction history from your bank so that we can make a credit assessment.
The payment is prepared immediately after you have signed your agreement. Provided that you have entered the correct account details in the application, you will have the money in your account no later than the next banking day.
Individuals who own more than 25 percent of a company are considered ultimate beneficial owners.
If we have all the information we need, we will get back to you with an answer by the next banking day at the latest. If we need more information, we will always contact you within 24 hours by phone or email to complete your application. Read more about Froda's business loans or make an application here.
Features
Yes. Log in to My Pages. Under "manage loan" you can go in and increase your amortization.
You can update your transaction data on My Pages. Under "update bank details" in the menu, click on "update" and follow the steps to get an updated available loan amount.
The available loan amount is the amount we estimate you could increase your business loan by. This amount is based on your transaction history and your existing loan, but does not take any other parameters into account. The available amount is only an estimate, and we cannot guarantee that your application will be approved until we have made a full assessment when you apply. The amount you are offered may be higher or lower than what the available amount indicates.
Yes, you can pause the amortization under the "manage loan" tab when you log in. Click on "pause amortization" and set how many weeks you want the pause to apply. The pause is then activated when you sign the agreement sent by SMS. You can pause the amortization as often as you like, but for a maximum of 6 months. The length of the pause you can apply for varies from company to company, but all Froda's customers have the opportunity to pause for up to 8 weeks.
There may be several reasons why you have a red box on My Pages. For example, you may have had an application rejected, be behind on payments, or we may not be able to offer your company a loan at the moment due to a debt balance with the Swedish Enforcement Authority or similar.
You can see how much available loan amount you have directly when you log in to My Pages. If you want to increase the loan, press "borrow more" and enter how much you want to increase the loan by.
You can check the status of your application by logging in to My Pages.
All your monthly reports can be downloaded under "accounting material" in the menu when you log in. The reports for the previous month are generated and available for download on the 1st of each subsequent month. At the end of the year, an annual report is also generated.
Yes, on My Pages you can add users and control which permissions users have under "manage users" in the menu.
Yes. You can log in to My Pages at any time and make adjustments to your loan to suit your company's current needs. You can pause your amortization, increase your loan, change the repayment, make an extra payment or pay off your entire business loan early. When you log in, your company also has a constantly updated loan amount that you can apply for. This way you can easily see what financing opportunities your company has if the need arises.
Security
Only people with a connection to the company, such as board members or beneficial owners, can act as guarantors for the loan.
A personal guarantee means that one or more individuals take on the financial responsibility for someone else. In the context of business loans, a personal guarantee is sometimes used as security for the loan, where the owner, or someone else, acts as a guarantor for the company's loan. This means that the guarantor becomes personally liable to repay the loan if the company is unable to do so.
We accept different types of security when you take out a business loan. The most common is that the borrower provides a personal guarantee for the loan, but you can also pledge different types of security for larger loan amounts, such as a mortgage or company mortgage. If you run a trading company or a sole proprietorship, you are always personally liable for the company's debts.
Security
The biggest difference between a bank and a credit market company is that a credit market company doesn't need to be connected to a payment system and therefore doesn't provide payment, card or transaction account solutions.
You need to identify yourself with BankID when applying for a business loan so we can verify your identity and confirm you have the right to represent the company you are applying for. The credit assessment also analyzes your company's transaction data, and we need your consent to do so. BankID is the solution Froda uses for identification and to obtain consent to read transaction data.
A credit market company is a company authorized by the Swedish Financial Supervisory Authority to conduct financing activities through lending and borrowing money.
About Froda
No, Froda only offers business loans.
The guarantee means that Froda should always offer a price that is at least as low as our competitors. If you have received an offer for a loan at a lower price from another bank than what you have been offered at Froda in the last 30 days, we will always match that price. The guarantee otherwise requires comparable terms (e.g., amortization and collateral) and only covers applications that have been granted loans by Froda.
No, Froda only offers business loans.
Business loans
We offer a fully digital business loan, customized to fit the everyday life of small business owners. By digitizing the process, we save time, money and energy for entrepreneurs who need financing. With our business loans, you avoid all the complicated paperwork, time-consuming meetings and manual assessments. Instead, you can apply whenever and wherever you want, you get an objective and fair assessment of your turnover, and you get access to financing when you need it.
Savings accounts
Froda offers simple and secure savings with no fixed fees, both with variable and fixed interest rates. All our savings accounts are covered by the government deposit insurance.
To get a business loan from Froda, you need to have a Swedish-registered company operating as a sole proprietorship, general partnership, limited partnership or limited company. Unfortunately, we do not lend to economic associations or foundations. Usually, your company also needs to have been actively selling for a few months for us to be able to make a complete analysis of your application.
Our minimum creditworthiness requirements are in place to create good conditions for you to repay the loan without straining the company's finances.
With Froda, you don't have to choose between smooth and affordable financing; you get both. Through new technology and data-driven analysis, we have developed a service that is easy to use and saves you time and money. Therefore, we can offer business loans with the same security and affordability as the major banks, but without all the time-consuming and complicated administration. You also never have to worry about hidden fees or commitment periods. The interest is the only cost you pay for the loan, and if you want to repay early, you can do so completely free of charge.
A lending company is either a credit company or a bank that has been approved by the Swedish Financial Supervisory Authority to conduct lending activities. It can be anything from credit companies, major banks to niche banks. All companies or businesses that lend money for interest are lending companies.
Froda is a lending company that offers fully digital business loans tailored to the needs of small and medium-sized companies. By digitizing the process, we can not only simplify the application process for you, but we can also significantly shorten the process from application to disbursement. When you apply for a business loan with Froda, you will receive a response within 24 hours and the loan will be paid out by the next banking day at the latest.
Find out how Froda can help you and your company grow by applying here.
As several parameters come into play when it comes to pricing business loans, the interest rate can differ by several percentage points from loan to loan. The average interest rate can therefore give a misleading comparison, which is why Froda does not use it as a measure. The interest rate your company receives is affected by, among other things, the loan amount in relation to turnover, loan term and credit rating.
You can download your agreement under "copies of signed agreements" in the menu when you log in.
No, there is no cost to make an extra amortization. On the contrary, you lower the total cost of the loan by making an extra amortization.
If you are not satisfied with your business loan with Froda, you can repay the loan at any time without extra cost.
Froda is a Swedish credit market company based in Stockholm and was founded in 2015. By digitizing the process for business loans, we have made it possible to help more companies with customized financing based on their unique business idea and operations, on market-leading terms. Froda was founded with the ambition to be a responsible lender, with clarity and transparency regarding fees and terms, that treats its customers in an honest, fair, and professional manner.
Today, Froda is one of Sweden's fastest-growing fintech companies and has helped more than 50,000 companies grow. In addition to business loans, Froda offers savings accounts for individuals and embedded financing services through Froda Embedded. Froda is a credit institution that has a state deposit guarantee and is under the supervision of the Swedish Financial Supervisory Authority (FI). The founders are active in the company, and behind the company are many well-known investors, such as Karl-Johan Persson (HM), Nicklas Storåkers (Avanza), and Victor Jacobsson (Klarna).
