Froda and Lunar creates an innovative SME lending solution together with Visa
Accessing new capital is an obstacle for many SMEs. The fintech companies Lunar and Froda are therefore partnering with the payment network Visa to digitalize the loan application process and make credit more accessible to SMEs.
Being a small business owner can be challenging. Even if you have a solid business with a steady cash flow, it can be difficult to raise the capital necessary to grow your company.1
Consider a restaurant owner interested in building an outdoor terrace ahead of the summer, or a merchant who wants to maximize sales during the holiday season by increasing their storage space. The main challenge these small business owners face is that the bank will often require material assets as collateral, something most small businesses don’t have.
To help more SMEs, fintech companies Froda and Lunar have partnered with Visa. The common goal is to give more SMEs access to business loans and remove friction from the process.
1The optimism of small businesses takes a hit – more are waiting to invest in the business, Froda, July 2022
https://froda.se/smaforetagarnas-optimism-far-en-torn-fler-avvaktar-med-investeringar-i-verksamheten/
– We are part of a payment market where everything is evolving and becoming more digital. That’s why we work in strong partnerships, leveraging the individual strengths of our partners create better products and services together, in this case to digitalize the loan application process and make credit more accessible to SMEs, says Philip Konopik, Regional Managing Director Nordics & Baltics at Visa.
In the new partnership, Froda will offer Lunar’s customers business loans through an embedded lending platform. The payment and repayment are built on Visa’s technical infrastructure, creating a fast and seamless experience for the end-user.
Thanks to Froda’s proprietary tool, which is based on machine learning, the credit assessment takes place in real time and can therefore easily be adapted for use in different markets.
– Many business owners are used to waiting several weeks for a response to their loan application. By then, the investment opportunity may have passed. Our collaboration with Visa and Lunar brings a new level of convenience and efficiency of the world of business lending for SMEs. We couldn’t be more excited about this partnership and look forward seeing this new ecosystem grow, says Olle Lundin, CEO at Froda.
Our collaboration with Visa and Lunar brings a new level of convenience and efficiency to the world of business lending for SMEs.
- Olle Lundin, CEO at Froda
Froda has, together with the fast-growing digital bank Lunar (which operates in Sweden, Norway, and Denmark), been looking for a universal and scalable solution for payment and repayment. They found these features in Visa’s push payment product Visa Direct Payouts.2
– We had payment solutions in Sweden that worked well, but to continue to grow, we have been on the hunt for scalability. In partnering with Visa, we also get access to their many partners all over the world through their global payment network, says Olle Lundin.
For Lunar, the new collaboration gives their customers access to the best possible business loan – delivered in a flexible and simple way.
– We want our business customers to have the same user experience as our private customers. In this area, the market for business customers is 5–10 years behind, something we want to help change, says Mats Persson Bergius, General Manager, Sweden at Lunar.
Lunar and Visa already have a close collaboration, which will expand further with this launch.
– Our main goal with every partnership is to deliver greater value to our customers. Visa is constantly testing innovative ways to use their trusted technology and are an inspiring partner to work with, says Mats Persson Bergius.
2Visa launch Visa Direct Payouts, a push payment services, mars 2021
https://www.visa.se/about-visa/newsroom/press-releases.3086934.html
Visa is constantly testing innovative ways to use their trusted technology and are an inspiring partner to work with.
- Mats Persson Bergius, General Manager Sweden at Lunar
Philip Konopik, Regional Managing Director Nordics & Baltics at Visa, looks forward to pursuing more new innovations together with their fintech partners.3
– This product is a good example of innovative partnership on the payment market, where fintech’s collaborate and contribute with their strengths to create a better offer for the customers. By working close to our partners, we can better understand the uniqueness of their offering and solve customer challenges together, says Philip Konopik.
3Accelerate locally and globally with Visa fintech team
https://www.visa.se/partner-with-us/fintech.html
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