[Kevin Henry-Seacoast]

Great


They will make more money because they expanded into australia and canada ...and when those numbers come in I do not want them added into the Usa numbers.

Cheaper costs of funds are always better...but we are not the Bank.

The cheaper cost of funds is reserved for A plus paper, a paper to keep the defaults down.( they tightened their requirements as well)

The other grades HAVE to cost more, more risk = more return...simple investing concept or people do things like that french guy from lc club or the big short...( they hide the risk grade of paper= fraud)

If peoples business model is not working...that is on them...other people are very successful, dealing with riskier grades.

its very simple everyone should stay on their side of the street

So what happens when the model of cheaper cost of funds and direct access captive customers leads to them reaching out to the same base for a riskier deal? Again....ONDK is deploying the capital, not the bank that has given them the line. If ONDK wishes to leverage the customer base and it makes sense, I bet they will gladly write a C paper deal with their cheap money.
Kinda like a factoring company that is owned by a bank does a facility for a company that has an ugly balance sheet and a tax lien. If it is a good client and you can manage the risk the deal gets done.....not at the same price as a cleaner company, but the deal gets done. There is nothing preventing any advance company from doing the same....so long as they are good at managing the risk.

[Karen37a]

So what happens when the model of cheaper cost of funds and direct access captive customers leads to them reaching out to the same base for a riskier deal? Again....ONDK is deploying the capital, not the bank that has given them the line. If ONDK wishes to leverage the customer base and it makes sense, I bet they will gladly write a C paper deal with their cheap money.
Kinda like a factoring company that is owned by a bank does a facility for a company that has an ugly balance sheet and a tax lien. If it is a good client and you can manage the risk the deal gets done.....not at the same price as a cleaner company, but the deal gets done. There is nothing preventing any advance company from doing the same....so long as they are good at managing the risk.

They need to fix whatever their issues are of stacking etc

I know the answers and hold the stacks down to almost nil...even on D paper

I will not disclose to competition on a message board

but its like you are saying, this credit card was 9 % and another one gave them one at 29%

or they took out a first mortgage and someone took a second

[Kevin Henry-Seacoast]

They need to fix whatever their issues are of stacking etc

I know the answers and hold the stacks down to almost nil...even on D paper

I will not disclose to competition on a message board

but its like you are saying, this credit card was 9 % and another one gave them one at 29%

or they took out a first mortgage and someone took a second

Fixing issues from when they started is part of the story that needs to be noticed. How many brokers from this board has an agreement with ONDK and others that can no longer do business with them for any paper and what happens when the clean up some of their past issues/reasons for the losses and expand their risk profile with a very large balance sheet. You don't survive in capital markets and financial services for long without evolving......