This builds upon their launch in Denmark in 2023, where Froda’s embedded SME lending solution was introduced to Lunar’s customers.
The European Commission ranked Sweden as the most innovative country in the EU landscape since 2001, with its ranking falling to second place in 2024. However, SMEs, which represent over 50% of Sweden’s GDP, face challenges in accessing financing.
In 2024, over 10.000 limited liability companies filed for bankruptcy, compared to 8,259 the year before and 6,289 two years ago. This marks the highest rate in the last decade. This year's bankruptcies have affected 33,193 employees, an increase of 38% compared to the year before.
The difficulties in obtaining loans from traditional banks and changing economic conditions pose a challenge for SMEs, and this is slowing down the country’s financial growth.
The partnership between Froda and Lunar comes as a response to these issues and aims to help SMEs by combining fintech innovation with modern digital banking solutions.
Leveraging Froda’s embedded lending platform and Visa’s global card infrastructure, Lunar’s Swedish customers can now access quick and flexible business loans directly through the Lunar-app. Funds are disbursed in seconds, and repayments are automatically processed via card transactions. The entire process is fully digital, removing the traditional barriers of long wait times and complex requirements.
Lunar notes that loans are the most sought-after product among its customers, alongside affordable bank accounts. By partnering with Froda, it aims to support SMEs’ growth and enable them to make convenient loans.
The embedded lending offering will be available to Lunar’s Swedish customers starting in February 2025. With this partnership, Froda and Lunar aim to make business financing in Sweden faster, more transparent, and fair.
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