So we all know that Merchant funding is Splitit paying merchant upfront for the product and then splitit being paid back by the installments. So the funding facility is simple. Think of it like this. Just say tomorrow...Splitit merchants for some insane reason push through $1billion dollars in MSV.....where is the money for splitit to pay the merchants $1 billion dollars tomorrow? Therefore they need a line of credit from a lender to do this.
Its a big pot of money (with a limit) that splitit can draw down and pay merchants....and then splitit is paid back in risk free installments by the end customer(buyer)
All big and small lenders have these facilities. The bigger the better. The company has to continue to scale this available credit from a lender up as it gets bigger and bigger.
It is probably therefore the most positive sign of growth future growth. We are a lending company with our merchant model....so we need lending facilities.
SPT Price at posting:
$1.14 Sentiment: Buy Disclosure: Held
