Klarna Group Plc agreed to sell as much as $26 billion of buy-now, pay-later loans to the student loan giant Nelnet Inc. as the fintech looks for ways to free up capital ahead of its public debut. The multi-year deal is structured as a so-called forward-flow agreement, where a buyer agrees to purchase loans before they have been originated. The agreement enables Klarna to sell newly originated, short-term, interest-free Pay in 4 receivables to Nelnet on a rolling basis. Over the life of the program, up to $26 billion in total payment volumes are expected to be sold. The transaction delivers scalable and efficient funding to power Klarna’s U.S. growth, while enhancing balance sheet flexibility and supporting long-term capital strategy. “This is a landmark transaction for Klarna in the U.S.” said Niclas Neglén, CFO at Klarna. “Our partnership with Nelnet allows us to scale a core product responsibly, while continuing to deliver smooth, interest-free payment experiences to millions of consumers.” The forward flow structure offers predictable, off-balance-sheet funding and underscores Klarna’s ability to structure and execute large-scale capital markets transactions. Klarna will continue to originate and service all receivables under the program, ensuring continuity and quality of experience for both consumers and merchant partners.