It's interesting on the cost of funds. I believe in the current...

It's interesting on the cost of funds. I believe in the current low rates environment the Splitit team should be able to reduce that.

Does anyone has colour on the 8% fund costs? Is that on an annualised basis? If so, then a 6 months BNPL will still make a profit for the company?

See below for a sample computation assuming 8% p.a and 3% merchant return to Splitit for a $1000 purchase split over 6 payments. It shows a profit of $6.67. Note I have also assumed that the purchaser doesn't pay anything upfront such that month 1 is full interest cost on $1000, if this is excluded, then the total cost of fund is even lesser (profit is $13).

I'm happy to expand and refine this if anyone has further information.

		Month 1	Month 2	Month 3	Month 4	Month 5	Month 6
1	Opening	1,000	833	667	500	333	167
2	Payment	-167	-167	-167	-167	-167	-167
3	Closing Balance	833	667	500	333	167	0
4
5	Monthly Interest Cost @ 8%p.a.	-$6.67	-$5.56	-$4.44	-$3.33	-$2.22	-$1.11
6	Merchant Fee @ 3%	$30.00
7	Total Return to Spiltit	$23.33	$17.78	$13.33	$10.00	$7.78	$6.67