http://www.littlehedge.com/should-we-buy-shares-in-money3/
This link is a great write up on the company last year. The late paying loans are disclosed in the annual report. It was down a little in FY17 from FY16, but still a concern given credit quality should improve with auto lending.
Once again, this could be to do with there not being enough collection staff versus the big growth in the loan book so customers aren't being chased up as well as they should be. Considering these are customers with budgeting issues, I can imagine constant contact would be helpful to get them paying again.
I'm happy enough with MNY. Lots of growth, major shareholder with excellent track record, and management with good skin in the game. Exiting SACC branches is a potential positive catalyst as well as a new cheaper loan warehouse facility down the line.
But the risk is this late loans start to move to provisioned and then to bad debts as times goes on. The auto loans are multiyear terms and the loan book ramp up in only about 2 years old. could come home to roost in the form of bad debt charges draining on profits when loan book growth slows.
