Accounting-driven Profit DelaysAccounting requirements that trigger sizable up-front credit charges for longer-duration financing defer revenue recognition and delay reported profitability for Fair Financing products.
Execution, Competitive And Regulatory RiskRisks such as underwriting failures, intensifying competition, slower consumer adoption of buy-now-pay-later, merchant fee pressure, and stricter regulation could materially weaken results and investor confidence.
Higher Funding ExpensesPremium payments and securitization-related fees raise funding costs, creating pressure on profitability and lending economics.