Affirm Incorporated has made an official announcement according to which, it has managed to obtain a $100 million lending facility from Morgan Stanley. The facility will allow it to continue expanding and help it collaborate with more leading online and offline retailers, which in turn will let it offer clients the facility of point-of-sale financing at more outlets.
In case you are unaware of it, Affirm Inc is a fintech company that offers the facility to obtain financial loans with instant decision. It was started by PayPal co-founder Max Levchin around 4 years ago and has managed to raise around $420 million in equity and debt so far. The company was valued at $800 million in its most recent round of fundraising.
Here is how the company describes itself,
Affirm offers consumers an alternative to traditional credit with a straightforward, transparent loan product that enables consumers to pay for purchases over time. Affirm uses proprietary technology to verify identity and assess credit risk in seconds by utilizing more sources of information than conventional FICO models, enabling it to provide financing to a broader set of consumers.
The company has also partnered up with over 750 merchants to give shoppers the flexibility to buy stuff and make monthly payments for their purchases. The company also makes a special mention of its clear policies and no fine print in dealing with customers. The company is amongst several fintech startups that are attempting to make loans faster and easier.
Being backed by an entity of Morgan Stanley is certainly great. Not only is there a lot more where the initial $100 million came from, Morgan Stanley’s faith is something that will boost that might also improve the company’s image and prospects in the eyes of other potential investors.
You can know more about Affirm by visiting its official website.