early life
Fair Financing loan economics: accounting income turns positive before free cash flow One loan cohort runs two rails. On the upper accounting rail, an upfront credit provision is charged at origination, a fair-value gain (H2 2026) can offset it, and interest income accrues gradually into the reported-income meter. On the lower rail, the loan principal deploys into a receivable and only returns gradually, so the free-cash meter stays negative until maturity. Customer deposits fund the growing loan book that absorbs the deployed cash. Origination one loan cohort fair-value gain upfront provision interest accrual income positive principal deployed principal repayment cash still negative customer deposits ≈90% of funding loan book receivables grow