Some great comments in this post. I never believed in the BNPL...

Some great comments in this post. I never believed in the BNPL thing - across all companies in that field. I did some work for a financier some years back and saw first-hand that the argument around “velocity of cash cycling” only works when people pay back when they’re supposed to (if at all), and the lack of systems that company had in keeping track, and the ability to recoup losses. Costs/ability with reclaiming any unpaid debt in BNPL = $0. So BNPL are always disadvantaged. Afterpay fought so hard for the industry to never be deemed a source of credit… errr???!

I read Afterpays reports and (I recall, circa 20% of the income was late fee charges. Enough said. I doubted CI1 after it pursued this ridiculous industry - particularly given it must have known this…

I suppose the issue for CI1 is scale and to take advantage of the crunch, which is only just starting. That’s why I invested in this company (pre any BNPL nonsense).

CI1 needs to find a way to build scale in this field though. Leverage what it knows. It certainly has an edge, given its focus on business.

CI1’s skill is through simple negotiation re: business debt. Financiers will listen: they can get something, or nothing - and it’s that simple. There's always room to move. And business credit is easier to deal with - less governance. The business needs to scale it’s intellect in a blanket way for the SME’s I think.