Payment platform Sezzle signs $250M receivables funding facility
Installment payment platform Sezzle Inc (ASX:SZL) today announces that it has signed a US$250 million receivables funding facility with Goldman Sachs Bank USA and Bastion Funding IV LLC. This is set to support the expansion of the company’s business in the US and Canada.
The new 28-month facility replaces Sezzle’s US$100 million receivables facility, and extends its funding facility well into 2023 compared to its existing facility’s maturity of May 2022. The new facility also lowers the company’s cost of funding, which will provide a positive effect on Sezzle’s net transaction margin over time.
Karen Hartje, Chief Financial Officer of Sezzle, comments:
“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. 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 which to achieve our growth plans while lower our funding costs.”
Key terms of the facility include:
- Size: Committed facility of up to US$125 million with an accordion feature to expand the facility size to US$250 million.
- Term: 28 months.
- Other: Covenants, representations & warrants, and reporting obligations typical of a similar Receivables Warehouse Facility.