Embedded SME financing firm Froda is teaming up with UK fintech and business account provider wamo to launch card-based lending in Finland.
Froda and wamo have developed a new solution that integrates lending directly into wamo’s platform, enabling Finnish SMEs to access financing through Visa business cards. The partnership aims to close the SME financing gap by offering fast, flexible financing of up to €200,000 to Finnish businesses, with an aim to support over 25,000 SMEs and drive nationwide economic growth.
Finland ranks second in the EU for digital competence, with 82 per cent of people having basic or advanced digital skills, trailing only the Netherlands. Despite this, the country’s SME financing infrastructure has struggled to keep up with evolving digital demands.
Although SMEs make up 99.9 per cent of Finnish businesses and employ over 63 per cent of the workforce, access to flexible and digital options has remained a challenge. The partnership addresses this pressing issue by providing Finnish SMEs with a fully digital and flexible financing option via card-based lending, helping businesses secure the financing they need to grow in a changing economic landscape.
“Our partnership with Froda is a significant step toward making business financing more accessible for SMEs across Europe starting from Finland,” explained Yanki Onen, founder and CEO of wamo. “Authorised by the FIN-FSA, wamo clients can apply for a loan in just a few simple steps, and if your company is eligible, you can receive a funding decision of up to EUR 100,000 in as little as 15 minutes.”
Unlike traditional SME financing, which is often impacted by lengthy applications, rigid terms and slow approvals, Froda’s embedded lending solution offers real-time access to capital via platforms businesses already use. This solution enables businesses to manage cash flow, invest in growth, and streamline operations without the complexity of traditional financing.
Enhancing business financing
“Finland is one of the world’s most digitally advanced nations, yet business financing hasn’t kept pace with that digital-first mindset,” added Olle Lundin, CEO and co-founder of Froda. “With this partnership, we’re tackling the financing gap head-on, offering Finnish SMEs a smarter, faster and more flexible way to access the capital they need to grow.”
Froda’s card-based lending solution enables card-issuing partners to offer real-time business loans, with seamless disbursements and repayments via Visa business cards, removing barriers to access financing and providing SMEs with the flexibility to manage finances and scale operations more effectively.
The partnership with wamo is another step in Froda’s mission to provide businesses across Europe with accessible and flexible financing solutions, on the best possible terms. The product is currently live in Finland.
Since 2021, Froda has developed embedded finance solutions that allow partners to integrate SME lending directly into their platforms. In 2022, Froda partnered with Visa to launch the world’s first card-based lending solution, leveraging Visa’s card infrastructure and push-payment functionality for seamless transactions.
Looking to the future, Froda and wamo will expand the model into additional European markets, scaling to serve thousands of SMEs across the continent while continuously improving the speed and flexibility of financing solutions.
