Embedded lending, explained
New to Froda, embedded lending, or business financing in general? Start here. Everything else in this toolkit assumes you already know what's below, so it's worth five minutes before you dive into launch plans or marketing channels.
What is embedded finance?
Normally, if a small business owner wants a loan, they go to a bank: a separate website, a separate login, a separate application. Embedded finance skips that trip. The loan lives inside a platform the business already uses every day, like their accounting software, their payments dashboard, or their bank's own app. "Embedded" simply means the financing is built into that existing product, not bolted on as a link to somewhere else.
Why does this matter for small businesses?
Europe has around 25 million small and medium businesses, and the gap between what they need to borrow and what they can actually access is estimated at over €400 billion. That's not because the demand isn't there. Traditional lenders were built around large, established companies with thick credit files and dedicated finance teams, not a five-person business that needs a decision in days, not weeks. Embedded financing reaches SMEs where they already are, using data the platform already has about them, which makes a fast, fair decision possible.
Who does what: you and Froda
Both products below work the same way underneath: a clear split between the relationship the customer sees, and the lending machinery they don't.
Your platform
Owns the customer relationship, the brand, and the distribution. Your customers see your name, your app, your support.
Froda
Runs the lending engine behind it: credit assessment, funding, the loan contract, payouts, repayments, collections, and compliance. All white-label, invisible to the end customer.
Our two products, today
This toolkit mostly talks about "the product" in general. In practice, it's one of two, each solving a different problem. See Product USPs & info for the full detail on each.
Business loan
Investing in growth
Froda's core SME loan: an annuity loan of €500 to €100,000, repaid over up to 24 months through automatic weekly withdrawals. Applied for in minutes, paid out within 24 hours, fixed price with no hidden fees.
Banks, neobanks, and software platforms, for customers who want a fixed, predictable loan.
Revenue based finance
Smoothing uneven sales
An advance sized on the revenue the partner already processes, repaid as an agreed share of daily card takings. Slow weeks repay less, so it flexes with the business, with no fixed monthly instalment.
Acquirers, PSPs, and marketplaces, for merchants whose sales are naturally uneven.
Why offer this instead of sending customers to a bank?
For the SME, it removes friction: no separate application, often a decision in minutes, because the platform already has the transaction data needed to assess them. For the partner, it means a new revenue line without becoming a lender, keeping the customer inside their own product instead of losing them to a bank, and avoiding the years of work it would take to build credit, risk, and compliance infrastructure from scratch.
Who's behind it
Everything above is run by Froda: a tech company that's been building embedded financing solutions since 2015. Its platform is built on 10+ years of experience serving SMEs, refined across intuitive user experiences and advanced machine learning and risk models, and it's a trusted partner to Visa Europe.
10 years+
Expertise in business financing
100,000+
Small and medium-sized businesses supported
Visa
Trusted partner to Visa Europe
Logos, boilerplate text, and everything else about Froda as a company live in Froda brand kit under Templates & assets, not on this page.
Ready for more? Get started walks through how this toolkit is organized, and SME lending insights goes deeper on why and when your customers actually need financing.
The embedded finance context above is sourced from Froda Embedded's own public materials (frodaembedded.com). For exact commercial terms, licensing detail, or anything partner-specific, check with your Froda contact rather than relying on this page alone.