More than half of European small businesses struggle with accessing financing. In response, the Swedish fintech company Froda expands its partnership with Visa, a world leader in digital payments, to scale embedded SMB lending across Europe. This enables other fintechs, banks, and neobanks to access Froda’s card-based embedded lending product to offer business loans to their customers.

Over 50 percent of European small businesses lack external financing, even though it’s a necessity in order to thrive and grow.* In the face of economic headwinds, access to finance becomes even more challenging. The partnership between Froda and Visa aims to help SMBs access financing in real time through automated credit decisioning and instant Visa Direct payouts.

“The extended partnership marks an important step in evolving the SMB landscape in Europe. Our joint efforts to promote the card-based embedded lending solution underline our commitment to fostering innovation for our clients and partners, so that they in turn can support the growth of small and medium-sized enterprises” says Philip Konopik, Regional Managing Director Nordics & Baltics at Visa.

This partnership focuses on the adoption of a card-based embedded lending solution. Card-based lending operates similarly to a traditional business loan for SMBs, but offers increased speed and convenience. It is widely accessible across markets, thanks to the extensive global network of Visa’s card infrastructure.The product creates opportunities for other fintechs and banks to scale their businesses and expand their offerings.

“This is a milestone for us and for SMBs across Europe. We are excited about what we have achieved so far and are confident that our innovative approach to SMB lending will continue to make a positive impact. The expansion plans across Europe demonstrate our dedication to reaching more SMBs and driving economic empowerment through accessible financing solutions” says Olle Lundin, CEO and co-founder of Froda.

Since the product was launched in June, card-based embedded lending is now available in Denmark via Lunar and in Germany via Kontist, a part of Ageras Group. The plan for the partnership is to embark on an ambitious expansion across Europe. The focus includes identifying new markets and partners. This expansion aligns with the companies’ commitment to providing accessible and innovative financial solutions to SMBs across Europe.

“Since the product´s launch in June, we have successfully gone live with two partners in two markets and have seen a great interest within the industry. We look forward to expanding the product to additional markets, providing more entrepreneurs with access to finance” says Stella Snickare, VP Froda Embedded.

*Eurostat, Statista, Allianz, Froda