I think when a lot of people saw that they combined with Liberty Tax through the
next Point deal that it really
positioned them as a market leader.
I knew I was actually quite excited to kind of
follow up and see their progress through their quarterly statements because
next point is a publicly traded company
in Canada, which gives People Like Us. Yeah opportunity to
go and dig through all the fun details.
But I was left a little bit disappointed because they
failed to file their end
of year financial statement. That's 20 20 21.
So I was already looking to get some type of you know
nuggets of how business was going. How many loans are
they making? You know, what's profitability like how much are they spending
on marketing? These are the things I like looking at right? It's all
and it's all public data. Yeah. These are things that we would be able
to report on analyze and talk about and of
course, they didn't follow their year and statements and
I'm like, okay, I guess I want to be waiting a little bit longer for that and then
they didn't file their 20 their first quarter 2020 to
reports either.
And that was for anyone who was paying
attention, which I'm sure.
Were few people but this is the kind of thing. I look at yeah, right.
I follow these type of companies and I follow their kind of
their financials and stuff. I knew that something was wrong.
Yeah, they did say that the reason
for the delay was not necessarily loan me driven, but
that they were still having trouble.
I guess calculating to Performance of something
of the Roman portfolio, but they weren't blaming an online me.
They said they had acquired some other tax company and it's
taking longer than expected. So I knew something was off but
it didn't didn't necessarily reflect on loan me.
But then there was a lawsuit
that loaned me filed against a loan servicer. I think
that was in May but it didn't cut the news didn't
come out until like early June because they filed it under seal and
I think it was pretty obvious to that point. Okay, something's
going on here. This is just as an outsider. Yeah without
any inside knowledge of what's Happening alone me. Yeah
if I had never talked to anyone and I wasn't talking to anyone internally about
what was going on. I just saw as an outsider something is
happening here.
And then all of a sudden next Point sites.
Market conditions right? I think that forget
it if we just forget about
loan means
Business model per second because theirs was
different they're not they were not an MCA company. They were small business
language. Well and this this is taking apart from when they announced the
acquisition pretty much next
Point announced that they're going to be one stop
Financial Services destination empowering hard working
and credit challenge consumers and small businesses to get
to the next point.
In the financial future. Yeah, I mean it
all made sense. I thought it was so cool that they were combined with
Liberty Tax. I thought there was going to be a lot of
You know cross-pollination as they say
where lonely was gonna get business from Liberty Tax
and vice versa there. Yeah loan me all the sudden
had this access to storefront to store Front, you
know businesses and stuff like that through literally storefront interaction.
But of course it did not work out the way that even I
imagined it. I'm sure it didn't work out the way that people at
loan me imagined it but let's just take if
we just put aside loamy's business model for a second
because they didn't do and they didn't do MCA. I think
they experimented with it for a while. Yeah, they do. They do longer term small
business loans. Yeah, and I I don't see market
conditions as
as really
it just is it a valid? I don't
excuse, you know because it's hard to really think
that there's truth behind that just because for the
last few months the small business finance Market has been hot. Yeah
people have not been able to hire enough. Yeah.
We're raising had yeah booming. This company's raising
this amount this credit facility and this yeah, we've been reporting about it
non-stop. Yeah, it's been hot. Right and of
course you and I are not necessarily privy to The Loan Data except
for in the cases of public can try to companies. I
know you Nova has been reporting great things on Deck. So
if you look if you take that and you compare to everything else that how
can how can all the sudden market conditions be affecting
loan me. I think that there's probably a little
bit more to the story that we don't know
perhaps that lawsuit that
loan me followed against the loan servers service
that says, you know, they didn't service the loan properly or
we're making mistakes to something. These are just allegations. Yeah,
perhaps, you know, there was some things that contrib
To the issues that they face and now
why they're closing but I don't I don't know that we can actually
I don't know that we could say, oh obviously Market
can Mark you I think that there's way more of
that story but ultimately loan me it will
not be rigidating any more business loans as you mentioned.
This was confirmed by next point in the
public statement. We did put out a story about it a week before that
a formal announcement because we had talked to and
heard from enough people that feel confident. Yeah that this was exactly
what was happening despite next Point not saying anything and then
I think it was June 21st. Next Point said, yes, it's it's true.
Yeah.
Um, well, yeah like and like you said what this is
definitely interesting. Sorry because they had they had
a vision that this is gonna be turning out a lot different than
what it pretty much ended up being the less than a year.
It's it's shocking to have watched play. Yeah,
and then like I mean and this is from the notes that I
took that the company says loan me had
originated two billion dollars since Inception 340,000 plus
borrowers since Inception and
it has a 2 million loan portfolio Liberty Tax
Bill our processes 185,000 plus ends S&E
tax returns a million plus us
consumer taxes change in 400 K plus
Canadian tax returns. It's the company projects about
317 million dollars in revenues for 2021 and
like you said at the end of 2021.
We couldn't even see well, you know what,
you know, what's interesting is that they haven't
actually filed their financials yet for the end
of last year or the first quarter of this year and hey, we're already done
with you know, we're already wrapping up to two. Yeah, so we
will actually get to find out what the financials were
and see.
It market conditions or loan performance or whatever exactly
is the cause of loan me. Yeah,
how were these launch performing? What was their revenue? How did
that stack up to this number that they were projecting? I'd be
curious to see I think that there's scheduled to report
they claim, you know, they keep pushing back when they're
gonna reveal all this data and I think within the next couple
weeks. Yeah, I think they're scheduled to put it out once and for
all yeah, so I mean, well, you know, we'll share whatever is in there. We'll share
what's going on. So that's definitely interesting.