Swedish FinTech Froda has launched a card-based embedded lending solution in Denmark.
Developed in partnership with digital challenger bank Lunar and Visa, this offering was successfully tested in Denmark during the spring and became available to all Lunar customers in the country Tuesday (June 20), Froda said in a Tuesday press release.
This new loan solution uses card rails for payouts and repayments and is designed to make it faster and cheaper for Danish small businesses to access financing, according to the release.
“It started with an idea and a sketch on paper more than a year ago, and now it has become a reality thanks to our partnership with Visa and Lunar,” Froda Co-founder and CEO Olle Lundin said in the release. “We have experienced a significant demand for the solution among Danish entrepreneurs during the test period, making Denmark a natural next step on our journey.”
In addition to giving small- to medium-sized businesses (SMBs) access to more financing options, the new embedded solution fully digitizes the loan process and completes the process in minutes, according to the release.
“Lunar will be the first to launch an entirely new type of financing for small businesses in Denmark,” Lunar Group Chief Revenue Officer Anne Marie Kindberg said in the release. “It is easy to apply through our app, and you receive a non-binding offer within a few minutes.”
During the test conducted in the spring among some of Lunar’s Danish customers, over half of the customers expressed great interest in this solution, the release said.
This card-based embedded lending solution is offered as a white-label product through Froda Embedded and is globally scalable, offering a consistent experience across countries, per the release.
“We are constantly working to find new, innovative ways to utilize the card infrastructure, including through strong partnerships,” Philip Konopik, regional managing director at Visa in Nordics and Baltics, said in the release.
The launch of this solution in Denmark comes about four months after Visa, Froda and Lunar partnered to launch a digital solution for business loans.
The companies said at the time that their collaboration will provide SMBs with a fully digital experience, easy access to financing, instant payments and the ability to repay loans through recurring card payments.
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