my point is that I don't believe they can leverage those warehouse facilities unless a certain % of the funds used are their own cash - so there must be a certain % perhaps linked to the overall quality of the loans that are writing.......and that is where the cash is going; their cash is held back as restricted funds so that the providers of the warehouse facilities never take a loss
The provision they make when they write a loan is purely an accounting entry, but the actual shortfall in collections is where these these restricted funds are used for.
The issue for them is that the cash balance is so small so that acceleration is taking longer than it normally would (not to mention they are also improving the quality of the loan book which means their net margin is falling so the cash/revenues being generated is reducing)
A real pickle....if this were 30c, they should raise 20-30m (so ~10% dilution) to accelerate growth, but no shortcuts in the way they are doing it now
my point is that I don't believe they can leverage those...
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