Sezzle Signs New $100M Credit Facility with Bastion, Replaces Goldman

Buy now pay later (BNPL) firm Sezzle signed a new $100 million credit facility with affiliates of Bastion Management, which will work as an administrative agent for the lenders.

The new receivables funding facility replaces its prior facility with Goldman Sachs Bank USA and Bastion, and will support Sezzle’s operations in the U.S. and Canada, according to a press release on Tuesday (Oct. 18). 

Extending Sezzle’s funding into 2024, the new credit facility will give the Minnesota installment payments startup expanded capacity into 2024, which also offers Sezzle greater flexibility. 

See also: Sezzle Expands Long-Term Finance Product With Genesis, Oportun

Sezzle CFO Karen Hartje called Bastion a “supportive partner” and said Sezzle is looking forward to their extended partnership.

“The new facility positions Sezzle with the necessary liquidity and balance sheet strength to pursue the company’s growth objectives and achieve profitability,” Hartje said.  

Read more: Sezzle on Using AI, ML Tools to Remove Fraud From the BNPL Equation

The credit facility from Bastion is for 24 months, with minimum utilization of $75 million by Dec. 31 and $80 million by March 31, per the release. The facility comes with a secured overnight financing rate of 11.5%. 

Related: PYMNTS Intelligence: How BNPL Is Shaping Consumer Buying Behavior

The company said it anticipates net interest expense as a percentage of underlying merchant sales will rise approximately 30 basis points, due to the macro interest rate environment and higher borrowing costs under the new facility, according to the release. 

Headquartered in Minneapolis and founded in 2016 by CEO Charlie Youakim, Sezzle offers interest-free buy now pay later installment plans for consumers at eCommerce marketplaces and select in-store locations.