Klarna Adds Germany to Its Capital Efficiency Platform With €900m Facility Supporting €5bn of German Financing Expansion

Key Terms

forward flow financial

A forward flow is an ongoing agreement in which a buyer commits to purchase assets or loans as they are created by a seller, often at pre-agreed pricing and quality guidelines. For investors, it matters because it supplies a predictable stream of assets and revenue while shifting credit and origination risk to the buyer—think of it like a supermarket subscription that guarantees steady deliveries rather than one-off purchases.

warehouse financing financial

Warehouse financing is a short-term loan arrangement where a lender advances money against a company’s stock of goods or recently originated loans so the company can keep operating until those assets are sold or packaged for longer-term funding. Think of it like a temporary storage locker loan that frees up cash now by using inventory or loan pools as collateral. For investors, it matters because changes in warehouse financing can quickly affect a company’s cash flow, leverage and vulnerability to funding disruptions.

off-balance-sheet financial

Off-balance-sheet describes assets, liabilities or arrangements a company controls or benefits from but does not record on its main financial statement. Think of it like a household that uses a rented storage unit or a friend’s credit card—these commitments can affect cash flow and risk even though they don’t show up on the home’s official ledger. Investors care because off-balance-sheet items can hide real obligations or potential future costs that change a company’s true financial health.

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NEW YORK--(BUSINESS WIRE)-- Klarna, the global digital bank and flexible payments provider, has established its first forward flow and warehouse financing agreement in Germany, a €900 million facility to fuel growth of its consumer financing products.

The facility responds to robust demand for Klarna's Fair Financing products in one of Europe's largest consumer markets.

"Fair Financing continues to see strong momentum with German consumers," said Niclas Neglén, Chief Financial Officer, Klarna. "This facility is a natural next step, bringing greater capital efficiency as we scale that growth further. We're pleased to welcome new partners to this structure, drawn by the strong credit quality of these products."

Under the two-year agreement, Klarna has sold a portfolio of its German Fair Financing term loans and will sell newly originated German Financing receivables on a rolling basis, providing scalable, off-balance-sheet funding while retaining all consumer-facing activities, including underwriting and servicing.

Note to editors

The facility size is $900mn. Over the course of the two-year term, as underlying assets amortize, new loans will continuously enter the facility. In this way, Klarna expects the amended agreement to facilitate the origination of up to €5bn-worth of German Fair Financing term loans during the remaining life of the program.

About Klarna

Klarna is a global digital bank and flexible payments provider. With over 119 million global active Klarna users and 3.4 million transactions per day, Klarna’s AI-powered payments and commerce network is empowering people to pay smarter with a mission to be available everywhere for everything. Consumers can pay with Klarna online, in-store and through Apple Pay & Google Pay. More than one million retailers trust Klarna’s innovative solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike and Airbnb. Klarna is listed on the New York Stock Exchange (NYSE: KLAR). For more information, visit Klarna.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements regarding our future financial performance, business strategy, growth objectives and market opportunities. Words such as "believe," "expect," "anticipate," "intend," "plan," "will," "may," "could," "estimate," and similar expressions identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed or implied. Forward-looking statements reflect our views as of the date of this release and are based on information currently available to us. We undertake no obligation to update any forward-looking statements, except as required by law. Actual results may differ materially from those anticipated. Investors should not place undue reliance on these forward-looking statements and should review the risk factors in our filings with the SEC for a more complete discussion of risks.

Category: Investor News

View source version on businesswire.com: https://www.businesswire.com/news/home/20260709750548/en/

Media contact
press@klarna.com

Source: Klarna Group plc