Klarna and Elliott Double Forward-Flow Facility to $2 Billion to Support $17 Billion US Lending Push

Klarna, the Swedish buy now, pay later and consumer finance group, announced on 24 March that it had doubled its forward-flow and whole-loan agreement with Elliott Investment Management to $2 billion, while simultaneously extending the facility's term by one year to a total of three years. The enlarged arrangement is designed to underpin up to $17 billion of consumer financing loans in the United States. Klarna said its US Financing GMV grew significantly in the fourth quarter of 2025.

Klarna said the upsizing reflects the strong performance of the programme since the two companies first announced their partnership in November 2025. Forward-flow agreements work by allowing the originator to sell newly created loans to an investor on a continuous, pre-agreed basis, providing a reliable and scalable funding channel that does not require Klarna to retain the assets permanently on its own balance sheet. Klarna retains all consumer-facing activities, including underwriting and servicing.

US EXPANSION DRIVES DEMAND FOR LARGER FACILITY

Klarna said the expanded facility gives it the capacity to support accelerating demand for its US Financing product. "Klarna's US Financing is growing fast because it gives Americans something the credit card industry never has: real choice, clear terms, and no surprises," said Niclas Neglen, Klarna's Chief Financial Officer.

Over the extended three-year term, new loans will continuously enter the facility as underlying assets amortise, which is how Klarna expects the $2 billion facility to support up to $17 billion of US Financing loans.

PARTNERSHIP BACKGROUND

Klarna has been listed on the New York Stock Exchange since September 2025.