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> borrowers slowly approach insolvency These are 4 week loans, exposure to any given customer is small. And in a recession demand for these loans will increase
by jjfoooo6 4y ago
> borrowers slowly approach insolvency
These are 4 week loans, exposure to any given customer is small. And in a recession demand for these loans will increase.
- toomuchtodo 4y agoTheir loan terms are typically 3, 6, 9, or 12 months. They’re not profitable and had $379 million in operating losses last year. Whether consumers ramp their demand for this product, which the data shows is overwhelmingly utilized for discretionary purchases such as fast fashion and their accessories, electronics, and digital goods, remains to be seen. > 43% of Gen Z users have missed at least one payment, according to a survey by the polling site Piplsay. Of Gen Z consumers who used a point-of-sale loan for something they needed, 30% missed at least two payments, according to a survey by Credit Karma. https://helpcenter.affirm.com/s/article/term-lengths https://helpcenter.affirm.com/s/article/term-lengths https://investors.affirm.com/news-releases/news-release-details/affirm-reports-fourth-quarter-and-fiscal-year-2021-results/ https://investors.affirm.com/news-releases/news-release-deta... https://www.sfgate.com/news/article/influencers-lead-Gen-Z-into-debt-17142294.php https://www.sfgate.com/news/article/influencers-lead-Gen-Z-i...
- jjfoooo6 4y agoI was mistaken about the loan term, I assumed they were typical "pay in 4" loans. That does sound quite bad.