Klarna has announced an expansion of its partnership with Elliott Investment Management. The company has doubled the size of its Forward-Flow and Whole-Loan sales agreement with funds managed by Elliott. This move will increase the facility to $2 billion and extend its term to three years.
Klarna’s Financing Expansion and Partnership Details
The recent enhancement comes as demand increases for U.S. financing products. The expanded facility will allow Klarna to issue loans up to $17 billion in the U.S. throughout the program’s remaining duration.
Key Features of the Agreement
- Upgraded facility size: $2 billion
- Extended term: three years
- Loan issuance potential: up to $17 billion
Under this agreement, newly generated receivables will be sold on a rolling basis to Elliott-managed funds. This arrangement offers balance sheet-neutral financing, while Klarna retains responsibility for underwriting and managing the receivables.
Performance Insights and Future Projections
Klarna indicated that this expansion reflects the program’s strong performance since its initial announcement in 2025. In the fourth quarter of this year, there was significant growth in gross merchandise volume within the U.S. financing sector. This growth has prompted a need for additional capacity.
Niclas Neglen, Klarna’s Chief Financial Officer, stated that U.S. financing has gained traction due to its advantages over traditional credit card offerings. He emphasized that it provides “real choices, clear terms, and no surprises.” The expanded facility is expected to support increasing consumer demand in the U.S.
Klarna noted that with the new three-year term, amortizing assets will continuously be replaced by new loans. This strategy ensures ongoing scalability of the program, adapting to market needs effectively.
