Sales Financing Providers Shut Down in Denmark Amid Stricter Lending Rules

The Danish market for sales financing and "buy now, pay later" (BNPL) services is experiencing a significant contraction, with multiple providers shutting down operations. This trend is largely attributed to increasingly stringent regulatory requirements imposed on the lending sector in recent years.

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Nordea Finans does not offer installment payments in Denmark primarily due to increasing regulatory requirements, which is why we prioritize our efforts within other services.

Companies like Spar Nord Bank, which closed its SparXpres solution, and Nordea Sales Finance have exited the Danish market. Nordea cited rising regulatory demands as the primary reason for discontinuing its BNPL services in Denmark, although it continues to operate in other Nordic countries. Express Bank and Santander have also wound down their Danish businesses.

These closures stem from regulations introduced in 2019 and further tightened in 2023. The initial "quick loan agreement" capped the annual percentage rate (APR) for consumer loans at 35%, and 25% if advertised, leading to the closure of many instant loan companies. Subsequent rules in 2023 mandated more detailed credit assessments for BNPL loans, making the process more complex and costly for providers.

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It has practically been suffocating for the market that the rules have been tightened so much.

Jan Lytje-Hansen, director of Viabill, described the tightened rules as "strangling" the market. He explained that even for a small loan of 300 kroner, a comprehensive creditworthiness assessment was required, similar to that for a larger loan. Although regulations were adjusted in November 2025 to allow for more qualified estimates and the use of consumer-provided information, Lytje-Hansen believes it came too late for many.

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For financing a consumer loan of 300 kroner, a complete creditworthiness assessment had to be made, and the disposable income had to be the same as if one were to borrow 3000 kroner for a washing machine.

The consequence of these closures, according to Lytje-Hansen, is a potential push for consumers into the unregulated "grey" loan market, which he considers the most irresponsible outcome. While Viabill and Klarna continue to offer services, the overall market has become significantly more challenging to navigate.

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The most irresponsible thing one can do is to send consumers out into the grey, unregulated loan market. This is done unintentionally by making it so difficult to get an overdraft facility, sales financin