RT @money254HQ@twitter.com

Option 2 - The fund has to raise it’s interest rate to recoup losses on each 14-day product (8% per loan vs 8% per annum will be interesting to watch here)

Option 3 - The fund is about to loose a lot of money very quickly.

What do you think?

#Money254
#HustlerFund

/End

🐦🔗: https://twitter.com/money254HQ/status/1597901303732396032

RT @money254HQ@twitter.com

What does this mean? Three options:
Option 1 - The fund cannot allocate much money to this direct to consumer product and will lend to intermediaries, where it can guarantee better repayment rates.

#Money254
#HustlerFund

/8

🐦🔗: https://twitter.com/money254HQ/status/1597901300364365825

RT @money254HQ@twitter.com

If GoK pulls a miracle and manages 95% repayment rates, beating most of the highest venture capital backed digital lending startups in Kenya, 25bn is still lost within 30 weeks.

#Money254
#HustlerFund

7/

🐦🔗: https://twitter.com/money254HQ/status/1597901295993556994

RT @money254HQ@twitter.com

If GoK manages a conservatively optimistic 75% repayment rate on the Hustler Fund loans, the fund will have lost 90% of their money in 16 weeks.
99% of the money is gone by week 30.

#Money254
#HustlerFund

6/

🐦🔗: https://twitter.com/money254HQ/status/1597901286896472064

RT @money254HQ@twitter.com

We’ve heard that the Hustler Fund plans a direct to consumer product that will be offered at 8% per annum at 14 days.

That means a 0.31% effective interest rate on each 14 day loan - the 14 day’s share of the 8% yearly interest rate.

#Money254
#HustlerFund

2/

🐦🔗: https://twitter.com/money254HQ/status/1597901267598446592

RT @money254HQ@twitter.com

On this assumption, the fund will gain only 0.31% for each 14 day-loan repaid. The fund will loose all the money that is not repaid to it, or defaults.

If people default on more than 0.31% of the loans, the fund will loose money on each loan cycle.

#Money254
#HustlerFund

3/

🐦🔗: https://twitter.com/money254HQ/status/1597901270672887808

RT @money254HQ@twitter.com

Unsecured short term digital loans are not new - tech-only industry leaders generally achieve between 70% and 90% repayments on short-term digital loan products in Kenya.

#Money254
#HustlerFund

4/

🐦🔗: https://twitter.com/money254HQ/status/1597901273671815169