Prospa IPO -bells, page-14

I had a brief look at the prospectus but stopped when I saw how much they are valuing the company at and how little profit it generates.

I don't like the business model, if they are charging 20% on a loan they have their costs of funds, all other costs then if they lose 10% of loans not much left!

Also saw one of their adds and they were more or less implying we can help when you can't pay wages Um that kind of means the company is insolvent - the odd business will have lumpy earnings and what not but I think they will push their loans to spaces of high risk and defaults will catch up to them.