Anytime you securitize an asset like that credit quality gets heavily scrutinized. From a working capital perspective you can cause a real liquidity crunch if y

Anytime you securitize an asset like that credit quality gets heavily scrutinized. From a working capital perspective you can cause a real liquidity crunch if you’re simultaneously a) growing and b) deteriorating factored asset quality leading to lower advance rates on subsequent tranches in the SPV. Restated in English, if you’re taking payday loans and your income is declining you’re about to have a bad time.