Nordic fintech Froda and digital challenger bank Lunar have expanded their partnership into Sweden, where customers will be able to gain access to and benefit from Froda’s embedded SME lending solution.
Froda and Lunar launched their partnership in Denmark in 2023, when Froda introduced its solution to Lunar’s customers.
The embedded lending offering will be available to Lunar’s Swedish customers with effect as of February this year.
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While small businesses represent more than 50% of Sweden’s GDP, Froda and Lunar point out that one of the challenges they face is access to finance.
They cite data which revealed that, in 2024, more than 10,000 limited liability companies filed for bankruptcy in Sweden – the highest rate in a decade.
“Small businesses are the driving force behind Sweden’s economy and innovation. Without access to capital, we risk losing crucial momentum,” said Olle Lundin, chief executive officer of Froda.
“This partnership reflects our shared commitment to empowering small businesses by blending cutting-edge fintech innovation with the digital banking solutions of tomorrow.”
More than 950,000 private and business customers across the Nordics use Lunar.
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The combination of Froda’s embedded lending platform and Visa’s global card infrastructure will enable Lunar’s customers in Sweden to access flexible business loans directly via the Lunar app.
The fully digital process sees funds disbursed “in seconds”, while repayments are automatically processed via card transactions.
Mats Persson Bergius, Lunar’s chief commercial officer, added: “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’re excited to expand our collaboration in Sweden.”
Back in September last year, Swedish fintech Juni formed an embedded finance partnership with Froda to address access to finance for Europe’s 25 million SMEs.
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Source: openbankingexpo
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