Tom Burnside

And therefore, then the cost of capital continues to go down as your performance of the models are better.

It's magic that way, right?

You know, that's a great question.

I think there's a couple of things.

The weighted average life of an asset, even though you write it for 24 or 36 months, you know, people end up paying it off in 18 months or they pay it off in 16 months.

So, you know, you, you know, within about a year,

a year and a half, you have a pretty good idea of how the curves are going to work.

Because most of your losses are really front-ended in the first six months, you'll see about 60% of your losses on a vintage analysis curve.

So it's relatively easy.

Once you get past six months, they can kind of predict the rest of your curve.

And so a year into it, you've got a couple of turns of products.

But, you know, it really wasn't until we got over, call it $100 million of transactions until they said, look, you got enough scale, enough predictability and a couple of turns of the product that we feel comfortable in giving you better pricing and better advance rates.

Yeah, it was about $15 million.

It wasn't a lot.

It wasn't a lot.

It sure did.

And we learned a lot.

Well, then you have these little things called losses, right?

So you have the cost of capital, but you also have losses, your second largest component.

So it was a lean year, but it was a great year of learning, a great year of kind of understanding how our credit models were going to perform and what we needed to augment them to get the losses in line with where we were hoping them to be.