Cash Converters takes on the âcrazyâ BNPL sector that allows customers to rack up 800 purchases in 90 days
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Mr Budiselik was speaking as Cash Converters reported a 46% drop in annual net profit to $11.2 million after a previously disclosed writedown of its pawn shop network to cover COVID-19 closures.
Excluding the impact of impairment, operating profit improved 26% to $19 million.
Revenue rose 22% to $245.9 million as demand for the companyâs loans increased and shoppers returned to its 155 Australian stores in search of second-hand goods.
Mr. Budiselik said that with record unemployment, Cash Convertersâ traditional customer base was âin good shapeâ and still able to meet their repayment obligations.
âBut the cost of living pressures are really starting to bite, so weâre seeing more transactions in the retail sector, with people selling us more goods and more demand for small loans,â a- he declared.
Cash Convertersâ loan portfolio grew 20% to $213.9 million in the year to June 30, with its medium-term priority loans increasing 54% to $76.1 million for exceed short-term or payday loans for the first time.
âWe see a high demand for credit, especially in the second half of the year, as people try to cope with increased expenses, or they have started to travel and see their families and are moving again,â Mr. Budiselik said. .
Customers borrow an average of $1,200 for nine months under Cash Converters Small Credit Agreements (SACCs) to cover expenses until their next payday, such as school trips or appliance repairs.
The average loan under the Medium Amount Credit Agreement (MACC) is $3,000 for 16 months.
Cash Converters declared a final dividend of 1¢ per share.



