Enova On Their Small Business Lending Exposure
Enova’s exposure to the small business lending crisis is limited, the company said during its earnings call yesterday. The Business Backer and Headway Capital are two of the international consumer lending company’s small business lending divisions.
In terms of their overall loan book, small business loans only make up a percentage worth in the teens. “It’s very much manageable for us,” CEO David Fisher said. Fisher also said that they did not have large exposures to entertainment, hospitality and restaurants in their small business loan portfolio and were well diversified.
“Defaults […] have not increased anywhere near as much as we would have expected. Lots of payment deferrals and modifications, but with the PPP checks coming in and states opening back up, we are somewhat encouraged that we haven’t seen very high levels of default yet.”
Enova reported a consolidated Q1 net income of $5.7M.Last modified: April 30, 2020