Since Affirm (NASDAQ: AFRM) went public, it has been drawing attention for its efforts to really bring "buy now, pay later" (BNPL) lending to the masses. The company offers several ways for consumers to buy everyday products with no money down and pay off those purchases in multiple installments. The company's services also help merchants boost their sales. But at the end of the day, Affirm is making lots of short-term loans, which means credit quality can make or break the company. With that in mind, let's take a look at how its loan quality is holding up.
With pandemic stimulus programs now in the rear-view mirror, inflation running high, and savings on the decline, it's not a huge surprise to hear that Affirm has seen delinquencies rise over the past year.
Image source: Affirm.
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How Is Credit Quality at Affirm Holding Up?