Asset Loans sweats on unsecured note offer

Queensland-based short-term lender Asset Loans has reported an impairment loss of $4.9 million for the 2005/06 year on a loan book of less than $20 million. The loss has blown out from $1.2 million reported the previous year. Although the group is profitable, reporting net profit of $924,000 for the year to June 30, it faces a funding crunch as a $20 million issue of unsecured notes matures. Asset issued the notes in March last year on short terms. It is currently marketing a second unsecured note offer.