Affirm Expands Credit Facility With New York Life

Affirm has gained off-balance sheet funding from New York Life that can support $1.75 billion in consumer loan volume per year.

This support is enabled by an agreement in which New York Life will purchase Affirm’s installment loans on a forward-flow basis from now to December 2026 with an amount outstanding of up to $750 million, the companies said in a Friday (Oct. 31) press release.

“Through our collaboration, we will be even better positioned to responsibly increase access to our flexible and transparent payment options,” Affirm Chief Operating Officer Michael Linford said in the release.

Affirm’s financial products allow customers to pay over time without having to pay late fees or hidden charges, according to the release.

The agreement announced Friday marks an expansion of a long-term capital relationship between Affirm and New York Life, the release said.

Before this expansion, New York Life had already invested nearly $2 billion in Affirm collateral, per the release.

New York Life Managing Director Brendan Feeney said in the release that Affirm “has distinguished itself by delivering superior credit outcomes that generate attractive returns.”

“We’re excited to take this next step in our relationship, which exemplifies how we collaborate with industry leaders to invest in growing, high-quality assets,” Feeney said.

Affirm said on Aug. 28 that it notched new highs across several business lines in the June quarter as buy now, pay later (BNPL) momentum continued online and in-store.

The company’s gross merchandise volumes soared 34% to $10.4 billion, and its revenues gained 33% to $876 million. In addition, active consumers, excluding the discontinued Returnly business, increased 24% to 23 million, and active merchant count increased 24% to 377,000.

As the company reported these figures in an Aug. 28 conference call with analysts, Affirm CEO Max Levchin said: “On the demand for our service, you see the acceleration in GMV and the new record in that sense. It is also a reflection of the fact that folks are using Affirm for more and more things.”

In some of Affirm’s most recent new or expanded partnerships, the company integrated its financial products into payment services provider Worldpay’s embedded payments offering for software platforms; integrated its BNPL option directly into home goods retailer Wayfair’s checkout experience; integrated BNPL options into Fanatics’ online sports merchandise platform; and added flexible installment plans to FreshBooks’ financial software platform serving small businesses.