Apple to fund pay-later loans off its own balance sheet

A smartphone with the Apple Pay logo is placed on a laptop in this illustration taken on July 14, 2021. REUTERS/Dado Ruvic/Illustratio

(Reuters) - Apple Inc plans to fund loans for its forthcoming Apple Pay Later service off its corporate balance sheet, the company said on Wednesday.

Apple said its treasury department will decide the exact mechanism it will use to fund the loans and funding sources may shift over time. Loans and creditworthiness decisions will be handled by a wholly owned subsidiary, Apple Financing LLC.