That must be how they can work out the possible 1.3 billion, without capital raising metric.
I guess what I find interesting is, once they have the finance facility, they notionally put the entire cash pile to the side…..and get the stop watch out and see how’s things run down over time.
For instance, they forecast bad debt ratios, but in common sense reality, if you write 100 loans, you forecast a prudent default range, but you need to be prepared for any reality really, or your entire entity might topple over from one extreme bad debt event.
Thats the common sense risk of their business model and at the moment, their cash pile looks still very generous, but more efficient utilisation of the balance sheet necessarily changes the risk profile. To their credit, Svr says it leads market in core business of assessing people’s lending risk…etc
SVR Price at posting:
$1.31 Sentiment: None Disclosure: Held
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