Affirm raises $100m credit line from Morgan Stanley

San Francisco based online lender Affirm has secured a $100m credit line from Morgan Stanley. The firm will use the funds to support its financial products. Affirm offers installment loans to consumers at the point of sale and enables people to take out simple loans and turn any purchase into a few monthly payments.

{

Morgan Stanley is not the first institutional lender to issue a line of credit to the company. In May of 2015, Affirm closed a line with Jefferies as part of a round that consisted of both equity and debt. Affirm disclosed at the time that the capital totaled $275 million but declined to disclose the debt to equity breakdown of that figure. “Today’s credit line is an indication from Morgan Stanley that they believe in our credit and underwriting practices,” said Jeremy Solomon, head of capital markets for Affirm. Solomon noted that the company’s current short-term loans will be the primary benefactor of today’s credit and any new products would need additional debt from diversified institutional investors to propagate. A syndicate was not needed in this round as Morgan Stanley was willing to fulfill the entire transaction.

https://techcrunch.com/2016/10/13/levchins-affirm-secures-100m-credit-line-from-morgan-stanley/