The following are some of my considerations on this scenario:-...

The following are some of my considerations on this scenario:

- These are low cost items, at worst I suspect a recession will see a minor to moderate increase in bad debts that would hardly affect the company at all and be more than offset by the following points:

- This company is growing exponentially for 3-7 years, recession or not.

- In a recession more people will swap from CC to no charge bnpl!

- The users of this product do NOT want to be banned from using it, even more so in a recession! Hence they will find a way to pay their late fee and resume its use especially as more and more of the retailers they use will be offering this service with time.

ive often heard the concern over bad debts in a recession and for the above reasons I cannot understand anyone potentially missing out on this incredible disruptor because of such a flimsy reason.

All companies carry risk. When those risks are extremely minor compared to the rewards (ie: when there are many many more ways to win than lose)....INVEST.

Good point to consider however, but my personal opinion.... any price weakness for that reason (similar to jc fraser rising interest rate concern) is merely an opportunity for cheap entry for intelligent investors.

Sometimes when amazing companies come along (csl, resmed, realestate, xero, A2, mvp, audinate, etc) one needs to stop looking for a reason to not invest, as you are then likely to blow out of all proportion those inevitable very small almost insignificant risks that always exist with all companies.

bad debts in a recession in a bank is bad news, in this company it’s not only irrelevant, a recession may increase it’s use and appreciation by previous CC users.