Overcoming Financial Challenges for SMBs
SMBs often need access to additional capital to expand operations, purchase new equipment, or manage cash flow. However, securing these funds can be a challenge due to stringent requirements and slow processes. Traditional banking methods sometimes involve lengthy approval periods, making it difficult for small businesses to get the financial support they need, exactly when they need it. This can result in missed opportunities and a lack of agility, preventing SMBs from staying competitive in a rapidly changing market.
Together, Visa and Froda work to address this challenge. By leveraging Visa’s technology, Froda’s lending platform offers SMBs a quick and fully digital financing experience, allowing them to access funds swiftly and efficiently. The process is divided into two seamless parts: first, Froda’s platform simplifies the loan application and approval process, making it easy for SMBs to apply without extensive paperwork or in-person visits. The second part focuses on delivering an efficient overall experience—approvals happen rapidly, and with Visa Direct, funds are transferred to the SMB’s account in real-time. Businesses can then leverage Visa commercial cards to manage their spending, monitor expenses in real-time, and make repayments effortlessly.
Through this partnership, Visa leverages its advanced products—Visa Direct and Visa commercial cards—to provide streamlined financial solutions that address common challenges faced by SMBs. This approach demonstrates how Visa's network and technology enable SMBs to access funds more easily and manage their finances more effectively, ultimately driving their growth and success.
Visa’s Role: A Game-Changer for SMB Financing
Visa’s solutions are central to the success of this partnership. By incorporating Visa Direct and Visa commercial cards into Froda’s lending ecosystem, the partnership has created a seamless and efficient process for disbursing loans and managing repayments. The Visa Direct solution, which allows funds to be transferred in real-time, drastically reduces the time it takes for businesses to receive financing—from up to 72 hours with traditional methods to just minutes.
Additionally, the Visa commercial card offers enhanced financial management capabilities. SMBs can track their spending in real-time, streamline their payment processes, and gain insights into their expenses, helping them make informed financial decisions.
Real-World Impact: Success through Visa and Froda’s Collaboration
Since the inception of the partnership, the results have been impressive. Froda has expanded its presence to Denmark and Germany and will continue growing across European markets. With VISA’s global network, Froda can seamlessly enter new markets by utilising the same integration and technology for payouts and repayments across all regions. This growth illustrates the demand for accessible, efficient financial solutions in the SMB sector.
One example of the real-world impact of SMB lending is Upplands Honung, a small family-owned beekeeping business in Sweden. In 2022, Upplands Honung sought financing to upgrade its production facilities. With the support of Froda, they were able to quickly secure the necessary funds without the usual administrative delays. This allowed them to significantly expand their operations, achieving annual revenue exceeding 7.3 million SEK. Stories like these highlight the value of our collaboration and how SMB lending empowers businesses to grow and succeed.
Such success stories demonstrate how this collaboration is making a tangible difference for businesses, providing them with the financial support they need to grow and thrive.
Addressing Financial Challenges with Visa’s Solutions
The challenges faced by SMBs extend beyond access to capital. Many businesses struggle with managing cash flow, navigating administrative burdens, and staying competitive in a rapidly changing market. The Visa-Froda partnership addresses these issues head-on:
- Instant Access to Capital: Visa Direct ensures that funds are transferred in real-time, allowing businesses to react quickly to new opportunities or unexpected expenses.
- Streamlined Application Process: Instead of relying on the longer processing times and manual paperwork typically associated with traditional bank loans, Froda’s technology leverages API-driven data to assess and approve loans within minutes. Combined with Visa-Direct for near-instant payouts, this provides SMBs with a faster and more seamless financing experience.
- Enhanced Financial Management: With Visa commercial cards, businesses gain greater control over their expenses, enabling them to streamline their financial operations and make strategic decisions based on real-time data.
About Froda
Founded in 2015, Froda set out to redefine business financing by making it accessible, efficient, and empowering for small and medium-sized enterprises.
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 and grow with ease. Today, Froda is one of Europe’s fastest-growing fintech scaleups. With a strategic focus on embedded financing,
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 market company under the supervision of the Swedish Financial Supervisory Authority.
For more information, visit Froda at www.froda.se
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.
The Visa-Froda solution is offered exclusively by Froda. Froda is the contracting party responsible for the product and its associated services. Clients interested in the solution will contract directly with Froda. Visa provides supporting technology and infrastructure but does not directly offer this solution.