Sezzle Doubles Receivables Facility to $300M, Cuts Funding Spread by 290bps
Sezzle has secured a $300 million, three-year receivables funding facility with Mesirow Alternative Credit, doubling its prior capacity and adding a $75 million accordion feature. The facility cuts the spread to SOFR plus 3.86%—down nearly 290 basis points—and raises the advance rate to 92.5%, lowering capital costs and supporting growth.
1. Facility Terms
Sezzle’s new three-year receivables funding facility provides $300 million in committed capacity with a $75 million accordion option, carrying a spread of Secured Overnight Financing Rate plus 3.86% with a 2.0% floor. The advance rate is set at 85% or up to 92.5% of eligible receivables originations, dependent on performance, and an unused line fee of 0.50% per annum applies to undrawn amounts.
2. Capital Cost Savings
The reduction of nearly 290 basis points from the prior facility’s spread of 6.75% to SOFR plus 3.86% lowers Sezzle’s cost of capital, improving financing efficiency and potentially boosting net interest margins and free cash flow. This enhancement strengthens the company’s balance sheet and positions it for more disciplined capital management.
3. Growth Funding Impact
Doubling committed capacity from $150 million to $300 million and increasing advance rates expands Sezzle’s liquidity for receivables financing, enabling higher originations volume. This additional funding power supports the company’s growth initiatives and underpins its strategy to empower consumers with point-of-sale financing solutions.