Minneapolis-based Sezzle has boosted its lending power ahead of the holiday shopping rush.
On Monday, the company announced that it’s more than tripled its debt financing facility with a new group of lenders. Sezzle CFO Karen Hartje says the debt financing helps power the company’s buy-now, pay-later platform.
The company allows customers to divide online purchases into interest-free installments over six weeks. Hartje says the debt financing facility funds consumer purchases before they pay Sezzle back.
“The more that we grow, the more funding that we need,” she says. “This gives us leeway to increase our market share.”
The new debt issuance paves the way for Sezzle to onboard more merchants and more shoppers, too, according to Hartje.
The debt facility comes from three lenders: Atalaya Capital Management, Hudson Cove Capital Management, and Bastion Consumer Lending. (Sezzle’s prior $30 million debt issuance came from Bastion.) Hartje says the new agreement comes with a lower interest rate than the previous debt issuance.
Sezzle began hunting for a new debt agreement in early fall, Hartje says.
In July, Sezzle went public in Australia.
“This substantial increase in liquidity provided by our partners will underpin Sezzle’s capacity to grow its offering to consumers and thereby aggressively grow our underlying merchant sales,” said Sezzle executive chairman and CEO Charlie Youakim in a statement.
TCB recently recognized Youakim as a 2020 “person to know.”