Alex Shvarts

So it's kind of compounding out.

we raise them with a stated interest and a contingent interest.

So we give the upside on how well the portfolio does.

No 80-20 split.

We charge our fees regardless of the performance, right?

But we do provide stated interest, fixed interest, let's say, and then the upside on how the portfolio or that node closes out over a period of time.

Yeah.

So traditionally, we're written off about 6.8%.

That was through 12-31-23 in bad write-offs.

What we see is... That's on a monthly vintage or your total life to date?

Total life average of write-off of about 6.8% of the receivables we purchase.

That's what we've written off, right?

So we recover at least 50% of what goes into defaults or collections.

And here's an interesting part.

The 6.8 is 100% right of uncollectible.

Can't get it out, right?

Here's some interesting stats.

Nine out of 10 of those deals that go into defaults

are not because the merchant is running into issues.

They're going in because they get the debt settlement companies call them and say, basically, stop paying.