Affirm, a fintech company that offers loans for large purchases, has obtained a $100 million credit line from Morgan Stanley. The facility will provide more lending capacity to Affirm, which specifically serves customers looking to finance expensive purchases instead of paying with a credit card. Users can then pay off their loans on set schedules without taking a hit to their cash flow. In an interview with CNBC, founder and CEO Max Levchin said the company's core customers are millennials disenchanted with credit cards—and the compounding interest that comes with them.
The $100 million facility shows major institutions are still drawn to the adolescent online lending space despite notable recent hiccups. Last month, credit provider LendUp was hit with $6.3 million in fines for a variety of violations.