Affirm Holdings stock was trading sharply higher Friday after the “buy now, pay later” company announced a sizable loan deal.Affirm and Sixth Street have entered into a long-term capital partnership in which the investment firm—through its asset-based finance platform—will invest up to $4 billion by purchasing Affirm loans over three years.

Sixth Street is committing capital upfront for Affirm to underwrite short-term installment loans, between four- and six-month timeframes.

Sixth Street agreed to buy as much as $4 billion of consumer installment loans from buy-now, pay-later lender Affirm Holdings Inc., marking the financial-technology firm’s largest capital commitment to date.