Buy now pay later company Payright has launched its second capital raising in four months, after a “deteriorating arrears position” forced it to recalculate its working capital needs for the year ahead. The company is seeking a little over A$10 million via a fully underwritten accelerated renounceable entitlement offer. When Payright went to the market in November to raise $5 million, limited shareholder participation resulted in sub-underwriter MCH Investment Management Services increasing its holding from 9.5 per cent to 52.5 per cent. MCH, which is a subsidiary of lender Metrics Credit Partners, is sub-underwriting the latest capital raising. If there is limited participation in the offer Metrics’ shareholding in Payright could increase to as much as 88.7 per cent. Since Metrics took control of the company, the board has flagged that it will review its status as an ASX-listed entity, as part of a wide-ranging review of the business. At the end of December, Payright’s gross receivables were $117.9 million – an increase of 31 per cent over the previous corresponding period. The company said it can sustain growth in its book because it operates in sectors that are under-served by other BNPL providers, such as education, after-market automotive and home improvement. Arrears grew from 3.63 per cent of the loan book to 4.79 per cent over the 12 months to December. The company said this was “reflective of seasonality over the holiday period and challenging macroeconomic conditions”. Expected credit losses rose 42.1 per cent from $1.9 million in the December half 2021 to $2.7 million in the latest half. The company said it has made changes to improve credit quality and arrears management. Proceeds of the capital raising will be used to collateralise loan receivables, pay down liabilities and provide working capital.  During the December half, Payright’s revenue rose 16 per cent to $9.1 million, while expenses fell 13 per cent to $7 million. The loss for the half was $4.9 million, compared with a loss of $6 million in the previous corresponding period.  Payright services 3,997 merchant stores and has 88,900 customers.