Victory Park Capital (“VPC”), announced the closing of a new warehouse facility of just over US$283 million with Zip Co Limited (“Zip”), a digital financial services company offering innovative, people-centered products. The facility, arranged in partnership with ATLAS SP Partners and VPC, will support the continued growth of Zip’s U.S. receivables. VPC is providing the second-lien mezzanine tranche as part of the transaction.

The two-year facility will finance Zip’s U.S. Buy Now, Pay Later (BNPL) receivables, increasing the company’s funding capacity and scalability. The transaction highlights the ongoing growth of VPC’s lending platform. Alongside its core senior secured asset-backed finance strategy, VPC now has the flexibility to execute lower-cost senior secured, forward flow and mezzanine transactions.

“VPC is proud to build on our partnership with Zip as the company continues its trajectory of transformative growth and prioritizes expansion in the U.S. market,” said Jason Brown, senior partner at VPC. “Through innovative and flexible payment solutions, Zip is helping unlock ease and stability in the everyday financial lives of consumers and businesses."

“We’re pleased to extend our partnership with VPC, as this facility will further enhance Zip’s U.S. capital management strategy,” said Joe Heck, Zip US CEO. “This funding warehouse will position Zip to support business expansion, maintain strong balance sheet discipline and capitalize on the available growth opportunity in the U.S. market.”

This is the fourth transaction between Zip and VPC, representing another extension of a long-standing relationship that began in 2015 with an A$108 million asset-backed warehouse facility that later grew to A$200 million. In 2020, VPC and Zip closed an A$100 million debt facility to fund receivables and support the Zip Business platform; in 2024, the two companies closed a refinancing agreement for a US$225 million debt facility to support the growth of Zip’s US receivables.