Because its not actual just early indicators and given Zip...

Because its not actual just early indicators and given Zip propensity to dress the figures, not a lot of faith can be pinned in that.

As you can note in the ANZ market the bad debts are at recent historical highs and ZIP are unable to get control of bad debts in their most mature market, it would be wrong to assume they have them under control in the fledgling USA market.

They only have $51 million cash left and if those USA bad debts revert to norms as per ANZ then that cash is wiped out.

Added to this that as credit quality continues to deteriorate in both USA and ANZ the demands on resticted cash could increase as warehouse funders grow increasingly nervous about their exposure.

You will note restricted cash increased from $59 million in June 22 to $116 million in December 2022 an almost 100% increase but only <1% of annual turnover as warehouse funders reduced the percentage exposure.

It again will not take much to wipe out available cash if warehouse funders become more demanding.