Monday 21/9 price prediction, page-49

Zip cannot be compared to Afterpay as they are distributing while we are making a credit selection. Last quarter our bad debts increased because of relaxing our credit criteria in the qtr ended Dec 2019 and the management has mentioned that on numerous occasions. A default becomes bad after 180 days. Zip learned the lesson at low exposure so going forward I believe that the bad debts will be lower. We don’t have to learn the expensive lesson of bad debts in the UK and USA....lucky zip when everyone thought (including me) that we are too late for the US and UK, in fact we have avoided an accident....You have to accept that US and UK two largest economies are not left with bad credits only, if that was the case all the banks would have collapsed by now. Here onwards zip with its slow and conservative lending policies will definitely be able to control bad debts within 1.5-2 percent of the GR.