Put simply, if you borrow money to lend it to others and they don't repay you, you have to pay the shortfall. That is the 5.5% of the loan book or 14% of revenue that ZIP paid last year. 1.1% to you
As to the rest of it, ZIP convinced its lenders that they would not be repaid, so they could get something instead of nothing. The lenders accepted it and the amount that was written off was used to create a 'profit' for ZIP in the 2024 FY - a quirk in Accounting Standards books the write off of a loan as 'revenue' lol. A remaining amount was raised as capital, shares printed, funds handed over to lenders who were satisfied, debt retired and here we are, just as FFS said
(20min delay)