The collaboration will offer flexible lending to small and medium-sized enterprises. Access to financing remains one of the most significant obstacles to growth for small businesses in the UK.
Swedish digital lender Froda and Mimo, a UK-based fintech platform, have teamed up to make up to £92m (€108m) available in flexible lending for small and medium-sized enterprises (SMEs) across the British Isles.
Founded a decade ago, Froda says its finance platform has shortened the general loan process small businesses may be grappling with from months to minutes, making financing more accessible to SMEs. The Swedish fintech is currently present in the Nordics, the UK, Ireland and Germany, partnering with companies such as Visa, the world’s largest payments network operator, UK fintech Checkout.com and Nordic digital bank Lunar.
“We’re proud to partner with Mimo as they build a smarter, more automated financial operating system for small businesses. By embedding financing directly into Mimo’s platform, we’re enabling UK SMEs to access the capital they need, without unnecessary complexity or paperwork,” said Olle Lundin, co-founder and CEO at Froda.
Growth
Mimo, which is short for “money in, money out”, has seen rapid growth since it was founded two years ago as a platform simplifying global payments, cash flow and financial management for SMEs, accountants and bookkeepers. It is currently being used by brands like clothing company Wales Bonner and bean company Bold Bean, as well as a number of UK accounting firms.
Froda’s embedded funding system allows Mimo users access to flexible, instant financing directly within their existing cash flow and payments workflows, according to the firm. It also takes away the need to switch to a different fintech platform and go through a lengthy application process, it says.
“Our goal at Mimo is simple: simplifying financial operations and cash flow management for SMEs and accountants. This partnership with Froda helps us do just that – bringing fast, flexible financing right into the financial tools our customers already rely on. It’s another step toward building the modern business platform that SMEs across the UK and Europe truly need,” said Henrik Grim, co-founder and CEO at Mimo.
As previously reported by Impact Investor, Froda in April announced it had raised €20m to grow its SME financing platform in Europe, while it had also become the first company to establish an EU-wide microfinance partnership with the European Investment Fund.
