At a time when the economy is facing headwinds, access to financing becomes even more important for startups and SME’s.

Fintech company Froda has partnered with Visa (NYSE: V) and Nordic digital bank Lunar to create a new, global loan solution for small and medium-sized enterprises (SMEs). The solution will utilize push-payment technology to reduce transaction times to a few seconds (instead of months, as now), aiming to offer easy access to financing and instant payouts for entrepreneurs.

The product will be provided as an API-based white-label service in partnership with issuers of Visa business cards, and SMEs will be able to apply for a business loan directly through their card provider. The solution will be accessible to Lunar’s customers in Q2 2023, with the potential for other SME card issuers to join.  (Froda)

Lunar’s customers gain would access to business loans through Froda’s proprietary embedded lending platform, featuring direct payments and repayments via Visa’s card.

The partnership with Visa provides a globally scalable product, available across 200 countries. Moreover, customers will be able to repay their loans through recurring card payments without having to track monthly invoices.

The use of Visa’s infrastructure will offer a consistent experience for customers regardless of market, while tokenization will protect cardholder information.

Olle Lundin, CEO at Froda said in a statement: “In order to support SMEs in the best possible way, it is crucial to find new ways to efficiently distribute SME financing. The solution aims to remove barriers by allowing loan repayments and payouts to be made directly through a payment card. Customers repay their loans through recurring card payments without having to track and manage monthly invoices.”

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Photo by Gene Gallin on Unsplash