Klarna has agreed to sell up to $26 billion of US buy now, pay later loans to student loan giant Nelnet.
The multi-year forward flow agreement will see Klarna sell newly originated, short-term, interest-free Pay in 4 receivables to Nelnet on a rolling basis.
Klarna says the forward flow structure of the deal offers it predictable, off-balance-sheet funding to power its growth in the US. It comes as the company gears up for an IPO.
The firm will continue to originate and service all receivables under the programme, ensuring continuity and quality of experience for both consumers and merchant partners.
Niclas Neglén, CFO, Klarna, says: “Our partnership with Nelnet allows us to scale a core product responsibly, while continuing to deliver smooth, interest-free payment experiences to millions of consumers.”
The US deal comes nearly a year after Klarna offloaded its UK loans book to hedge fund Elliot Advisors in a move designed to free up around £30 billion.