Sezzle Inc. (NASDAQ: SEZL) announced a new $300 million receivables funding facility with Mesirow Alternative Credit, doubling its previous $150 million committed facility established in April 2024.

The facility carries an interest rate of Secured Overnight Financing Rate plus 3.86%, representing a reduction of nearly 290 basis points from the prior facility's spread of 6.75%. The advance rate increased to up to 92.5% of eligible receivables originations, compared with up to 90.0% previously.

The three-year facility includes a $75 million accordion feature and reduces the minimum utilization requirement to $50 million from the previous $60 million. The unused line fee is set at 0.50% per annum on unused committed capacity.

"This new facility materially improves our cost of capital, expands our committed capacity, and better positions us to support the growth opportunities ahead," said Lee Brading, Chief Financial Officer of Sezzle. "We believe these improved terms reflect the strong performance of our receivables and the disciplined approach our team has taken to credit and capital management."

The facility operates with either 85.0% or 92.5% advance rates on eligible originations, dependent upon receivable performance. Mesirow Alternative Credit serves as both lender and administrative agent for the arrangement.

Sezzle operates a digital payment platform that provides point-of-sale financing options to consumers and merchants. The company previously expanded its original facility to $225 million through an accordion feature before securing this refinancing arrangement.