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BNPLs: Businesses Needing Provided Legibility (2022)

• lawrenceyan 4y ago
  “If you came to me tomorrow with a loan for $100 at 25% APR, since I trust you to underwrite good loans, I’d buy that loan from you. I have very few opportunities to buy low-risk 25% APR debt in the current interest rate environment. I don’t need to trust that loan, per se, I need to trust you, because I intend us both to be repeat players on this transaction and we both understand how statistics work. I am not buying the performance of that loan, I am buying the performance of random samples from your loan-creating machine.” — Patrick McKenzie