I told you good time to buy, page-1754

They have never been either cashflow positive or profitable in Australia and there is no prospect in the forseeable future. They are financing receivables in 8 groups of varying quality, making up funding for $200mil. Would be interesting to know how much the receivables package is, knowing that close to 50% receivables are not repaid and they tend not to do credit or background checks to establish who they are lending to.

Sezzle recently had their warehouse facilities halved, at the same time the loan to value ratio was reduced from 90% to 70%, so their cashflow is devoted to repayment and working capital. Goldman Sachs is the lender of choice to BNPL and speculatively the same may be happening here, although it is also part of Zip's normal business to securitise its receivables - it does it fairly regularly. This is part and parcel of the capital squeeze to keep the lights on - traditional loan resources have been exhausted, possibly capital raises too and with the residual expenses accrued from forays into far flung corners of the globe, it's still a mightily hungry operation.