Following this announcement, the collaboration is set to close the SME financing gap through the process of offering fast, secure, and flexible financing of up to EUR 200.000 to Finnish businesses. The deal also aims to support multiple small and medium-sized enterprises (SMEs) and drive nationwide economic development as well.
In addition, the companies developed a solution that integrates lending directly into wamo’s platform, allowing SMEs to access financing through Visa business cards. Froda’s embedded lending service is set to offer real-time access to capital through the platforms that businesses already use. The tool will also allow businesses to manage cash flow, streamline operations, and invest in growth without the complexity of traditional financing.
According to research made by eurostat, Finland ranks second in the EU for digital competence, with 82% of individuals having basic or advanced digital skills, trailing only the Netherlands. The country’s SME financing infrastructure has also struggled to keep up with evolving digital demands, as SMEs make up 99.5% of Finnish businesses and employ over 63% of the workforce, while access to flexible and digital options has also remained a challenge.
The partnership will address this pressing issue by offering Finnish SMEs a fully digital, secure, and flexible financing option through the use of card-based lending. This process aims to optimise the manner in which businesses secure the financing they need to develop in a changing economic landscape. At the same time, Froda’s card-based lending solution will allow card-issuing partners to offer real-time business loans, with disbursements and repayments through the use of the Visa business cards, removing barriers to access financing and offering SMEs the flexibility to manage finances and scale operations more effectively.
The deal will also focus on Froda’s mission to provide businesses in the region of Europe with accessible and flexible financing services. For future plans, the companies aim to expand the model into additional European markets, as well as scale to serve multiple SMEs across the continent while continuously improving the speed and flexibility of financing tools.
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