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In recent years, Froda has experienced strong growth and increased its focus on embedded finance. Now, Visma Finance joins as a new partner to Froda Embedded. The collaboration involves the companies jointly launching the new product invoice loans.

Froda's technology platform, Froda Embedded, enables partners to offer business loans and new types of financing solutions to their customers. The partnership with Visma Finance means that small business owners gain more flexibility through a new type of loan product. Unlike a regular business loan, the loan is not paid out to the customer, but instead to automatically pay the invoice.

"With Froda Embedded, we can give more companies the opportunity to offer financing to their customers based on their needs. This contributes to our vision of helping as many entrepreneurs as possible to access financing," says Olle Lundin, CEO and co-founder of Froda.

Visma Finance is one of Sweden's leading actors within invoice financing for small and medium-sized companies. With the partnership, business owners who have received an invoice from a supplier using Visma Finance can split the payment of the invoice through an invoice loan, while the invoicing company does not have to wait for payment.

"We are very pleased with the collaboration with Froda and the opportunities it provides us and our customers. We aim to be a comprehensive solution for small business owners, and Froda has a market-leading product for lending to small businesses that we look forward to offering," says Martin Källum, Chief Product Officer at Visma.

About Froda

Froda was founded in 2015 with a clear mission – to democratize the access to financing and provide small and medium-sized businesses with the same opportunities to grow as large ones.

Through digital processes and technological innovation, Froda has shortened the loan process from months to minutes, making it easy for entrepreneurs to invest in their ideas. Today, Froda is one of Sweden's fastest-growing tech companies with a 1.7 billion SEK valuation and well known investors such as Karl-Johan Persson, Nicklas Storåkers and Victor Jacobsson among the owners.

In 2021, Froda launched a strategic initiative on embedded financing, and through it, the company has expanded to the Nordics, the United Kingdom, Germany, and Ireland, and entered into partnerships with, among others, Visa, Lunar, and Checkout.com. Froda is a credit market company under the supervision of the Financial Supervisory Authority. Read more: https://froda.se/en

About Visma Finance

Visma Finance AB, as part of the Visma group, leads in solutions for embedded corporate financing in business and financial systems in Sweden. Read more: vismafinance.se

Visma is a leading provider of business-critical software in the cloud, with a turnover of 2.06 billion euros in 2022, 15,000 employees, and 1.7 million customers in Europe and Latin America. By simplifying and automating the work for businesses and organizations of all sizes, we enable a more efficient and prosperous society. Visit us at visma.se.

The Swedish fintech company Froda has demonstrated strong growth in recent years. Since its inception, Froda has provided businesses with over SEK 10,5 billion in financing. Now, the company is announcing the next step in its growth journey by entering its seventh market – Ireland. The expansion is facilitated through a partnership with Treyd.

– Our mission has always been to develop a universally applicable financing solution for small businesses. The expansion over the past year is clear evidence that we have made significant progress on this journey. Last year, we assisted entrepreneurs in five different markets in accessing financing. Our ambition for 2024 is to double that impact, says Olle Lundin, CEO and co-founder of Froda.

Over the past years, Froda has focused internationally through Froda Embedded. In 2023, the company entered two new markets and increased its international portfolio by over 800 percent. Froda Embedded serves as a dynamic tech platform, allowing fintech companies and banks to seamlessly integrate and provide growth financing or business loans to their customers.

– With our Embedded financing product, we can help growth companies offer their customers flexible financing solutions through a simple API integration. The partnership with Treyd means that we can help each other scale up and make our financing solution available to many more merchants, says Stella Snickare, VP Froda Embedded.

One of Froda´s partners is fintech company Treyd, which through its “Sell first, pay suppliers later” solution offers a new and simplified take on inventory financing for growing SMEs. With the help of Froda Embedded’s API integration, Treyd can now provide even more flexible financing options to merchants, also in Ireland.

– The partnership with Froda has enabled faster expansion, both geographically and operationally. It has helped even more merchants finance inventory, enabling them to sell first and pay suppliers later, says Peter Beckman, CEO and co-founder of Treyd.

Entering the Irish market means that Froda is now present in seven markets: Sweden, United Kingdom, Germany, Denmark, Norway, Finland and Ireland.

More than half of European small businesses struggle with accessing financing. In response, the Swedish fintech company Froda expands its partnership with Visa, a world leader in digital payments, to scale embedded SMB lending across Europe. This enables other fintechs, banks, and neobanks to access Froda’s card-based embedded lending product to offer business loans to their customers.

Over 50 percent of European small businesses lack external financing, even though it´s a necessity in order to thrive and grow.* In the face of economic headwinds, access to finance becomes even more challenging. The partnership between Froda and Visa aims to help SMBs access financing in real time through automated credit decisioning and instant Visa Direct payouts.

– The extended partnership marks an important step in evolving the SMB landscape in Europe. Our joint efforts to promote the card-based embedded lending solution underline our commitment to fostering innovation for our clients and partners, so that they in turn can support the growth of small and medium-sized enterprises, says Philip Konopik, Regional Managing Director Nordics & Baltics at Visa.

This partnership focuses on the adoption of a card-based embedded lending solution. Card-based lending operates similarly to a traditional business loan for SMBs, but offers increased speed and convenience. It is widely accessible across markets, thanks to the extensive global network of Visa´s card infrastructure.The product creates opportunities for other fintechs and banks to scale their businesses and expand their offerings.

– This is a milestone for us and for SMBs across Europe. We are excited about what we have achieved so far and are confident that our innovative approach to SMB lending will continue to make a positive impact. The expansion plans across Europe demonstrate our dedication to reaching more SMBs and driving economic empowerment through accessible financing solutions, says Olle Lundin, CEO and co-founder of Froda.

Since the product was launched in June, card-based embedded lending is now available in Denmark via Lunar and in Germany via Kontist, a part of Ageras Group. The plan for the partnership is to embark on an ambitious expansion across Europe. The focus includes identifying new markets and partners. This expansion aligns with the companies’ commitment to providing accessible and innovative financial solutions to SMBs across Europe.

– Since the product´s launch in June, we have successfully gone live with two partners in two markets and have seen a great interest within the industry. We look forward to expanding the product to additional markets, providing more entrepreneurs with access to finance, says Stella Snickare, VP Froda Embedded.

*Eurostat, Statista, Allianz, Froda

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 Visa
Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.