Reply To: Can you elaborate on "We have the benefit of the underlying receivables"

Hi Sam,
Speedymoney’s average loan size is $550 and offers a standard term of one month. As such there are thousands of small loans outstanding at any point in time. Investors underlying risk is to the whole portfolio of loans, and therefore diversified over thousands of customers that work in many different industries. Whilst we do not like any loan to fall into arrears or default, one loan going bad will have little impact on the return of the portfolio as a whole. The other matter to consider is customers’ pay-cycles. Most Speedymoney customers are paid weekly, and therefore so are their repayments, and comprise both principal and interest, which means that Speedymoney’s exposure to a client decreases quickly. Regards Speedymoney