SPT 0.00% 7.5¢ splitit payments ltd

Monday's Close, page-166

  1. 94 Posts.
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    It's interesting on the cost of funds. I believe in the current low rates environment the Splitit team should be able to reduce that.

    Does anyone has colour on the 8% fund costs? Is that on an annualised basis? If so, then a 6 months BNPL will still make a profit for the company?

    See below for a sample computation assuming 8% p.a and 3% merchant return to Splitit for a $1000 purchase split over 6 payments. It shows a profit of $6.67. Note I have also assumed that the purchaser doesn't pay anything upfront such that month 1 is full interest cost on $1000, if this is excluded, then the total cost of fund is even lesser (profit is $13).

    I'm happy to expand and refine this if anyone has further information.

    Month 1Month 2Month 3Month 4Month 5Month 6
    1Opening1,000833667500333167
    2Payment-167-167-167-167-167-167
    3Closing Balance8336675003331670
    4






    5Monthly Interest Cost @ 8%p.a.-$6.67-$5.56-$4.44-$3.33-$2.22-$1.11
    6Merchant Fee @ 3%$30.00




    7Total Return to Spiltit$23.33$17.78$13.33$10.00$7.78$6.67
 
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