Froda and Lunar expand embedded SME lending partnership to Sweden

Froda, a leading Nordic fintech, and Lunar, the digital challenger bank, are thrilled to announce the expansion of their partnership into Sweden. This builds upon their successful launch in Denmark in 2023, where Froda’s embedded SME lending solution was introduced to Lunar’s customers. Now, Swedish customers will gain access and benefit from the same innovative lending solution.

Sweden continues to be a key player in the EU’s innovation landscape, ranking as the second-most innovative country. However, small businesses, which represent over 50% of Sweden’s GDP, face mounting challenges, particularly in accessing financing. In 2024, over 10,000 limited liability companies filed for bankruptcy, marking the highest rate in a decade. The changing economic climate and difficulties in obtaining loans from traditional banks make it even harder for small businesses to realize their ideas, which in turn is slowing down Sweden’s growth and competitiveness.

“Small businesses are the driving force behind Sweden’s economy and innovation. Without access to capital, we risk losing crucial momentum. This partnership reflects our shared commitment to empowering small businesses by blending cutting-edge fintech innovation with the digital banking solutions of tomorrow,” says Olle Lundin, CEO of Froda.

A new standard for SME financing

With 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.

“Beyond offering affordable bank accounts and great service, loans are the most requested product among our business customers. Together with Froda, we aim to make it easier for small businesses to grow, and we’re excited to expand our collaboration in Sweden,” says Mats Persson Bergius, Chief Commercial Officer at Lunar.

The embedded lending offering will be available to Lunar’s Swedish customers starting in February 2025. With this partnership, Froda and Lunar set a new benchmark for business financing in Sweden – fast, transparent, and fair, giving small businesses the tools to thrive on their own terms.

About Froda
Founded in 2015, Froda set out to redefine business financing by making it accessible, efficient and empowering for small and medium-sized businesses. Froda is creating opportunities for all business owners, regardless of background, to turn their ideas into reality. By leveraging digital and technological innovation, Froda has transformed the loan process from months to minutes, ensuring that financing is not just fast and efficient, but also inclusive and on fair terms. Today, Froda is one of Europe’s fastest-growing fintech scaleups. With a strategic focus on embedded finance, Froda has expanded across the Nordics, the UK, Ireland and Germany, partnering with industry leaders like Visa, Checkout.com and Lunar. Froda is a licensed credit institution under the supervision of the Swedish Financial Supervisory Authority. For more information, visit Froda

About Lunar
Lunar is a digital challenger bank dedicated to simplifying and enriching people’s financial lives by creating the best everyday bank in the Nordics. Founded in Aarhus, Denmark, Lunar employs around 400 people across the Nordic region. In 2019, Lunar received its banking license and has since become one of the few banks with a Nordic banking platform. Today, over 950,000 private and business customers across the Nordics use Lunar. Find out more at www.lunar.app.