Probably should be their head of product mate :) ... A $4k...

First 33 Last

Share
Profile

Follow
ValueTrader82

629 Posts.

35

07/06/18

18:19

Post #: 33573967
Share

Originally posted by Warnie ↑

There are some ways to correct the lending model and improve returns while keeping the interest rate lower

Say it was a $20,000 loan less the below charges/fees
Loan Establishment Fee 20% = $4000
Service fee $50 month (no interest charged)
Interest rate 9%p.a for 12 months, then recaps at 18% in second year
**Can pay out early no penalty (enticement to payout early) + (Prospa make their fees anyway) meaning (less reliance on interest returns)
** If you payout the first 12 months P and I on time, you can reborrow the same amount (50% of gross loan) again (with an attached rollover fee ** Another bonus for Prospa) makes the loan book a continual revolving one.

This provides the borrower with higher fees yes, however the interest rate is acceptable.

Lastly, what you also provide each small business is a free business advertising section within a portal of some kind, where all businesses using the prospa product can sell their services, products etc to other prospa business customers, building a longer term sustainable catalogue of client.

Anyway, what would I know.

Expand

Probably should be their head of product mate ... A $4k application is pretty rough for a $20k loan though no? Services fees are a nice touch, don't they have to be providing some form of debtor administration to be eligible for that? Only issue that remains is that they still have a 12 month old receivable with no underlying asset being purchased or security held

Last edited by ValueTrader82: 07/06/18

PGL Price at posting: $3.64 Sentiment: None Disclosure: Not Held
3 Upvote

0 Great analysis

Reply

Top Stories

DUI

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

HotCopper Highlights: Your most watched stocks for Week 47, 2024

PYC

Scientific conference spotlights PYC's work on blindness disease treatment

SIG

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

LPE

Sales growth pushes Lovisa's fortunes (and shares) upwards

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

There are more pages in this discussion • 28 more messages in this thread...

First 33 Last

Add PGL (ASX) to my watchlist

Probably should be their head of product mate :) ... A $4k...

Top Stories

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

HotCopper Highlights: Your most watched stocks for Week 47, 2024

Scientific conference spotlights PYC's work on blindness disease treatment

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Sales growth pushes Lovisa's fortunes (and shares) upwards

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Featured News