Original post on SPT`s threat and some thoughts about these companies. SPT listing on asx today and up 90%, but im not holding it lol. happy to discuss more.
im an APT holder since the merger, havnt gone through SPT`s prospectus but had a look at their operational update. similar model to APT and ZIP and i will keep an eye on it. something interesting: 1. NO late fee or penalty: unlike APT, SPT does not charge late fee or penalty. not only they lost a source of income, also they couldn`t eliminate people poor in credit; 2. Average order value about $1000, much more than APT`s figure (maybe similar to ZIP), again, higher risk of default. I will be interesting to find out their bad debt ratio or transaction loss as percentage of merchant transaction; 3. Longer repayment period. I havn`t tries the service yet but had a browse their introduction: up to 36 monthly repayment, which means no doubt they have much longer repayment period than APT. people familiar about these companies would understand how much pressure on their cashflow. for example, imaging someone bought an item for $1000 using SPT/APT service, the service provider must pay the merchants in a short period of time, in return for about 4% of merchants fee (both companies have a similar number), and then collecting repayments from service user over 4 instalment (APT) or up to 36 instalments (SPT);
