They changed their product construct in the last few quarters...

They changed their product construct in the last few quarters where you’ve seen revenue grow rapidly. So the actual yield they presented for loans originated in the last few quarters have Net Interest Margin at 25%, this was after they capitalised the 6% customer acquisition costs into the loan. Wholesale funding is 11% of the gross fee yield. So newer originations brought them into a profitable quarter. I assume the 25% NIM is what brought them to this point. Prior to this it would be around 15-20% before they capitalised origination expenses into the loan.

Funding facility went from 7.5 mill to 11 mill back in July 2024 quarter, they’ve got an increase last year. With improved margins on newer loans I think they can get one considering they were in a worse financial position a year ago. It is definitely a punt for a 6 mill market cap lender, could be rewarding if they pull it off. It all pretty much hangs on the increase of the wholesale funding facility. They’ve reached out to a debt advisory to handle this process, ideally they get a result from it. A lower interest rate would be great!