My understanding is that there are two components to the debt cost, the overnight bank rate (the risk free rate) plus a margin on top for risk.
That's right, as the quality of the loan book improves and the business scales more, that should allow for a reduction in the margin on top.
Way back many years ago then MNY had a facility with a company called Fortress. It was when the business still had a payday loan component and mainstream credit was hard to come by.
That cost was about 10% and interest rates were much lower then. So debt costs for the business have come down a lot since ditiching payday lending and focusing on secured car loans.
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