Klarna has agreed to sell up to $26 billion in US buy now, pay later loans to student loan giant Nelnet.
The multi-year forward flow agreement will enable Klarna to sell newly originated, short-term, interest-free Pay in 4 receivables to Nelnet on a rolling basis. This deal structure provides Klarna with predictable, off-balance-sheet funding to support its growth in the US, particularly as the company prepares for an upcoming IPO.
Klarna will continue to originate and service all receivables under this program, ensuring a consistent and high-quality experience for both consumers and merchant partners.
Niclas Neglén, CFO of Klarna, stated: “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.”
This US deal follows nearly a year after Klarna sold its UK loans book to hedge fund Elliot Advisors, a move aimed at freeing up around £30 billion.