A: This is a percentage representing the return on total investment for each customer. When we make a loan or a buy with a customer, we are investing in their likelihood of redeeming the loan or at a minimum, the value of the collateral. When the loan is redeemed, the shop will see a 100% return on investment plus the interest.
In my case here in Florida, I would see a minimum of 125% for a first-time customer upon redemption. However if the item defaults I will not see a return until the item is sold, or otherwise removed from inventory. It is possible for a customer to have a negative return if they default and the collateral is sold at a loss or deleted.