Investment Matters

Company news: Mr Rental

Major regulatory changes are coming in relation to what is colloquially known as pay-day lending, as well as consumer leasing.  Limits on interest rates, repayments as a portion of income, and limits on the number of loans per customer are some of the measures.  Short term lending and leasing arrangements will become fairer, especially for lower-income customers.

Alternative and Equity investors have exposure to Mr Rental.  Mr Rental rents whitegoods and electronics through owned and franchised stores around Australia.  With a sustainable business model not designed to gouge low-income customers, its operations are not caught up in the changes mentioned above - if anything it could be a beneficiary (e.g. through increased volumes).