I'm not sure that your comment that "every interest increase is a decrease in margins", is actually true. Most finance companies that I've dealt with seek to manage this risk by aligning their cost of funds with their returns ie fix their borrowings for money lent at a fixed rate, and have variable costs of funds for variable lending. As a whole, this sector is currently pushing their net interest margin upwards (though whether this is true of Wisr I'm not sure).
Maybe @McKhenry can help answer this.
Massive opportunity cost, page-273
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