Further to my earlier point....perhaps will be the lowest at...

Further to my earlier point....perhaps will be the lowest at HUMM..........Good governance is the key.....


from AFR

Ballooning bad debts smoke Sezzle

Tom Richardson

Shares in buy now, pay later player Sezzle are down 5 per cent this morning to $6.65, after giving back 14.8 per cent yesterday.

Investors are heading to the exits after Sezzle reported its provision for uncollectible accounts (as a proxy for bad debts) soared to $US13.8 million on revenue of $US27.8 million ($38.3 million) for the June quarter.

The company said the bad debts (equalling nearly 50 per cent of revenue) jumped as it invested in expansion and took on large enterprise clients. As a percentage of merchant sales, the bad debts equalled 3.4 per cent.

Sezzle’s underlying merchant sales for the June quarter soared to $US411.1 million and are up nearly 10 times in two years.

Sezzle is not alone in the buy now, pay later sector flagging huge bad debts as a percentage of revenue.

Others such as Afterpay, Zip Co, Laybuy and Openpay also report high percentages, but not as much as 50 per cent.

Some of the other players’ bad debts as a percentage of revenue can be found here.

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Afterpay’s bad debts or receivables impairment expense of $72.1 million equalled 17.3 per cent of revenue of $417.2 million in financial 2020. Zip’s bad debt expenses of $29.5 million equalled 18.3 per cent of total revenue of $160 million for the first-half of financial 2021. And OpenPay posted a receivables impairment expense of $7.9 million, equal to 46 per cent of revenue of $18 million in financial 2020.


How much is HUM -->> lets find out tomorrow