Sezzle inks $250m receivables facility and eyes North America growth
Buy now, pay later venture Sezzle has signed a $250 million funding facility with Goldman Sachs Bank USA and Bastion Funding IV as it looks to expand in the US and Canada.
Sezzle operates a payment platform with 2.2 million active consumers, offering interest free instalment plans at online stores and in-store locations.
The company says that the new 28-month facility “complements its strong balance sheet, replaces its $100 million receivables facility, and extends Sezzle’s funding facility well into 2023 compared to its existing facility’s maturity of May 2022.”
The new facility also lowers its cost of funding, which will assist its net transaction margin over time.
“The committed facility from Goldman Sachs and Bastion will play a critical role in the growth and capital management strategies of Sezzle for 2021 and beyond,” says Karen Hartje, Chief Financial Officer at Sezzle.
“We are happy to be working with them, as we are experiencing significant growth in the US and Canada.”
“We have never been in a stronger liquidity position in whichto achieve our growth plans while lower our funding costs.”
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