Froda, a leading fintech in embedded finance, and digital challenger bank Lunar, today launch their smart business financing for small and medium-sized enterprises (SMEs) in Sweden. After a successful collaboration in Denmark since 2023, the goal is now to facilitate growth for Swedish companies as well.
Sweden is currently ranked as the EU's second most innovative country, having been overtaken by Denmark in 2023. At the same time, small businesses, which contribute over 50% of the country's GDP, face challenges, especially in terms of financing. In 2024, more than 10 000 limited liability companies went bankrupt, the highest figure in over a decade. The changing economic climate and challenges in obtaining loans from traditional banks make it even more difficult for small businesses to realize their ideas, slowing down Sweden's growth and competitiveness.
- Small businesses are the engine of Sweden's economy and innovation, but without access to capital we risk losing momentum. This partnership shows our common drive to strengthen small businesses by combining fintech innovation with the digital banking services of the future," says Olle Lundin, CEO of Froda.
A new standard for corporate finance
Through Froda's Embedded Lending platform and Visa's global card infrastructure, Lunar's Swedish customers get access to fast and flexible business loans directly in the app. Disbursements are made in seconds and repayments are handled automatically via card transactions. The process is fully digital and designed to eliminate traditional barriers such as long waiting times and high requirements.
- In addition to an affordable bank account with good service, loans are the most requested product among our corporate customers. Together with Froda, we share the vision of making it easier for small businesses to grow, and we look forward to strengthening our collaboration in Sweden as well," says Mats Persson Bergius, Commercial Director at Lunar.
The product will be available to Lunar's Swedish customers from February 2025. With this launch, Froda and Lunar are creating a new standard for business financing in Sweden, fast, transparent and fair that empowers small businesses to grow on their own terms.
About Froda
Froda was founded in 2015 with the ambition to redefine business finance by making it more accessible and efficient for SMEs. Froda creates opportunities for all entrepreneurs, regardless of background, to realize their business ideas. Using digital processes and technological innovation, Froda has revolutionized the loan process, shortening it from months to minutes - with a focus on providing fast, fair and inclusive financing. Today, Froda is one of Europe's fastest growing tech companies, backed by investors such as Karl-Johan Persson, Nicklas Storåkers and Victor Jacobsson. In 2021, Froda launched an embedded finance initiative, through which the company has expanded to the Nordic region, the UK and Germany, and entered into partnerships with Visa, Lunar and Checkout.com, among others. As a credit market company, Froda is under the supervision of the Swedish Financial Supervisory Authority. Read more about Froda
About Lunar
Lunar is a digital challenger bank with the goal of making it easier for private customers and companies to manage their finances by building the best everyday bank in the Nordic region. Lunar was founded in Aarhus and has about 400 employees in the Nordic region. In 2019, Lunar received a Danish banking license and is now one of the few banks with a Nordic banking platform. Lunar currently has around 950,000 private and corporate customers in Sweden, Denmark and Norway. lunar.se
Posted
February 11, 2025
