Klarna Secures €1.4 Billion Warehouse Financing Facility with Santander

Klarna has secured a €1.4 billion financing facility with Banco Santander, its first-ever warehouse facility, backed by receivables in its German business. The deal will enhance Klarna's funding tools and support its growth strategy. Klarna has also been building a platform to sell loan streams to investors and has struck similar deals with Nelnet and Elliott Investment Management. The fintech is considering reviving its potential New York IPO as soon as September.

Klarna Group Plc has secured a €1.4 billion financing facility with Banco Santander, marking the fintech's first-ever warehouse facility backed by receivables from its German business. The deal, announced on July 2, 2025, aims to enhance Klarna's funding tools and support its growth strategy [1].

The financing facility is a significant milestone for Klarna, which has been expanding its loan portfolio and exploring new funding avenues. The deal with Banco Santander will allow Klarna to tap into a new source of liquidity, enabling it to further grow its operations and expand its product offerings.

Klarna has been actively building a platform to sell loan streams to investors, a strategy that has been gaining traction in the fintech industry. The company has already struck similar deals with Nelnet Inc. and Elliott Investment Management. In a recent forward-flow agreement, Klarna agreed to sell up to $26 billion of buy-now, pay-later loans to Nelnet, a student loan giant [2]. This deal will enable Klarna to expand its "pay-in-4" product in the US, allowing consumers to split up purchases and pay them off interest-free in a matter of weeks.

Moreover, Klarna is considering reviving its potential New York IPO as soon as September. The company had previously filed for its IPO with the US Securities and Exchange Commission in March but put the plans on hold amid market turbulence triggered by President Donald Trump's announcement of wide-ranging tariffs in April [2].

The strategic partnership with Banco Santander further underscores Klarna's commitment to sustainable growth and its ability to attract significant investment. As the fintech continues to innovate and expand its offerings, this financing facility will be instrumental in supporting its future endeavors.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-14/klarna-signs-26-billion-forward-flow-agreement-for-us-loans
[2] https://www.bloomberg.com/news/articles/2025-07-02/clarna-secures-1-4-billion-financing-facility-with-banco-santander