Froda, a leader in embedded finance for SMEs, has joined forces with UK fintech wamo to launch card-based lending in Finland. The partnership aims to close the SME financing gap, by offering fast, flexible financing of up to €200,000 to Finnish businesses, with an ambition to support over 25,000 SMEs and drive nationwide economic growth.

Finland ranks second in the EU for digital competence, with 82% of people having basic or advanced digital skills, trailing only the Netherlands. Yet despite this, the country’s SME financing infrastructure has struggled to keep up with evolving digital demands. Although SMEs make up 99.9% of Finnish businesses and employ over 63% of the workforce, access to flexible and digital options has remained a challenge. The partnership addresses this pressing issue by providing Finnish SMEs with a fully digital and flexible financing option via card-based lending, helping businesses secure the financing they need to grow in a changing economic landscape.

Froda, an embedded SME financing player, and wamo, a business account provider, have developed a solution that integrates lending directly into wamo’s platform, allowing Finnish SMEs to seamlessly access financing through Visa business cards. Unlike traditional SME financing, often bogged down by lengthy applications, rigid terms and slow approvals, Froda’s embedded lending solution offers real-time access to capital via platforms businesses already use. This solution allows businesses to manage cash flow, invest in growth, and streamline operations without the complexity of traditional financing.

“Our partnership with Froda is a significant step toward making business financing more accessible for SMEs across Europe starting from Finland. Authorised by the FIN-FSA, wamo clients can apply for a loan in just a few simple steps, and if your company is eligible, you can receive a funding decision of up to EUR 100,000 in as little as 15 minutes,” says Yanki Onen, CEO and founder of wamo.

“Finland is one of the world’s most digitally advanced nations, yet business financing hasn’t kept pace with that digital-first mindset. With this partnership, we’re tackling the financing gap head-on, offering Finnish SMEs a smarter, faster and more flexible way to access the capital they need to grow,” says Olle Lundin, CEO and co-founder of Froda.

Froda’s card-based lending solution allows card-issuing partners to offer real-time business loans, with seamless disbursements and repayments via Visa business cards, removing barriers to access financing and providing SMEs with the flexibility to manage finances and scale operations more effectively.

Since 2021, Froda has developed embedded finance solutions that allow partners to integrate SME lending directly into their platforms. In 2022, Froda partnered with Visa to launch the world’s first card-based lending solution, leveraging Visa’s card infrastructure and push-payment functionality for seamless transactions.

The partnership with wamo is another step in Froda’s mission to provide businesses across Europe with accessible and flexible financing solutions, on the best possible terms. The product is currently live in Finland. Looking ahead, Froda and wamo will expand the model into additional European markets, scaling to serve thousands of SMEs across the continent while continuously improving the speed and flexibility of financing solutions.