DanThe 3 key challenges to the business are: 1. refinancing the...

Dan
The 3 key challenges to the business are:
1. refinancing the short term debt (and/or recapitalisation which seems to have been what has happened per newspaper reports)
2. gaining sufficient capital/warehouse facilities/backers to fund some sort of growth (they need to increase from that ~1.2-1.3bn loan book to support any increase in valuation and also build economies of scale)
3. ensure that their credit models are robust and will survive a very different economic environment to what they've experienced in the past (so economic slowdown, slower credit growth, higher funding rates, more bad debts, reduced access to funding etc)

(1) seems to be done, (2) they need to communicate their updated strategy post this refinancing/recapitalisation (so growth vs profit balance and how they are going to navigate this, and (3) will only play out over the long term. Mgmt have a lot of discretion from what I can see when evaluating how collectible their debt is and auditors don't seem to have the time or expertise to test mgmt's assumptions on the number of clients and loan book of this size & duration.

Anyway, 1-2 more days and at least the first 2 of the above will be clearer