Sezzle Inc Share Price Up on $250 Million Warehousing Facility (ASX:SZL)

At time of writing, the share price of Sezzle Inc [ASX:SZL] is up nearly 3%, trading at $10.80.

After a bit of time in the doldrums, the SZL share price is pushing higher, threatening to puncture the previous high in August, as you can see below:

ASX SZL Share Price Chart

Source: Tradingview.com

We take a look at the latest announcement out of SZL and the outlook for the SZL share price going forward.

Highlights from Sezzle announcement

Here are the key bits from today’s announcement:

• Size: Committed facility of up to US$125 million with an accordion feature to expand the facility size to US$250 million.

  • Term: 28 months

It comes via Goldman Sachs Bank USA and Bastion Funding IV LLC.

The facility is designed to help SZL in its push into the US and Canada.

Outlook for SZL share price

BNPL stocks are a trader’s paradise, but treacherous waters for investors (longer term) I believe.

Take this little snippet from a recent Reuters article:

Nearly 40% of U.S. consumers who used “buy now, pay later” have missed more than one payment, and 72% of those saw their credit score decline, according to a study by Credit Karma, which offers customers credit score checking for free.

The study, conducted for Reuters, surveyed 1,038 adult consumers in the United States to gauge interest in “buy now, pay later” and found 42% of respondents had used the service before.

‘“The percentage of consumers missing payments is remarkable and not as low as you would expect,” said Gannesh Bharadhwaj, general manager for credit cards at Credit Karma.

‘“When you make something so convenient, people may not be really thinking, ‘Do I have the budget? Can I afford this payment?’ You get more of that impulse-shopping behavior that leads to realizing they may not be able to make the payment.”’

That’s something to keep in mind from a risk perspective.

But at the same time with Biden’s helicopter money to kick in, maybe there’s more to the SZL share price than just hype.

More e-commerce BNPL consumer mania in the US?

I wouldn’t bet against it.

You can catch more of my thoughts on Sezzle in the video below:

Regards,

Lachlann Tierney,
For Money Morning


Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Lachlann is involved in two publications:


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