So, getting a loan with the personal/auto receivables as...

So, getting a loan with the personal/auto receivables as collateral. Like a near guaranteed rate owed to the investors.

We retain a lot of the downside risk of the loans. And we pay out X% to those investors. Do we retain some upside from the receivables?

Or is the benefit to us the time value of the money?


Eg. retain the receivables as our own, and receive the money after 3-5 years. Inflation meaning that $100 in 3 years is worth like $90 in today's money.
OR
Do the ABS transaction, sell them off, and receive the $100 cash upfront, but pay out the X% interest rate.

OR
We gain cash upfront, we sacrifice some future customer repayments (IR X%), but we can use that upfront cash to decrease more expensive debt in the meantime (being an overall positive?)? (Or it appears that managament may be using it for loan book growth rather than reducing the PEP interest bill)


Is the ABS an overall positive? Or is it a negative forced onto us, eg. from PEP coming due in >1 year, or due to equity ratios being too weak to continue to grow the loan book much?