Sezzle Gains $100 Million Funding Facility, Share Price Soars (ASX:SZL)

This morning, Sezzle Inc [ASX:SZL] released their first update since their September quarterly report.

The BNPL (buy now, pay later) company has secured a US$100 million funding facility, which more than triple’s their prior US$30 million credit facility.

Sezzle’s share price had climbed 4.167% by midday, to $2.50.

This is still 20 cents short from the company’s apparent resistance level of $2.70:

Source: Market Index

You can check out my colleague’s discussion of this resistance level here.

Could this new funding facility push the share price passed this resistance?

Download now: Three ASX fintech stocks taking on the banks (and winning).

Sezzle now set to hold larger merchant load

The new facility is part of a syndicate agreement among three US credit providers: Atalaya Capital Management, Bastion Consumer Lending and Hudson Cove Capital Management.

Sezzle will use it to pay back merchant clients in advance of the instalment payments made by end customers who use the Sezzle payment platform.

This means the company can expand in the North American sector, as they can now afford to take on more merchants.

Executive Chairman and CEO, Charlie Youakim said of the agreement:

This substantial increase in liquidity provided by our partners will underpin Sezzle’s capacity to grow its offering to consumers and thereby aggressively grow our Underlying Merchant Sales [UMS]’.

In their Q3 2019 update, Sezzle’s UMS sat at $68.8 million, up 64.2% from the June quarter.

This was the largest single quarterly increase in UMS in the company’s history.

It will be interesting to see how this new funding facility will impact Q4 results.

It likely won’t be until these results are released that we see any test of the resistance level.

Developing market sectors merging

In other news, last week Sezzle partnered with Medical Marijuana Inc’s subsidiary, HempMeds, to provide an instalment payment option for cannabidiol products.

Medical Marijuana, Inc CEO Dr…

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