Severe arrears no drama for Asset Loans
Short-term lender Asset Loans boasts an arrears rate of 39.9 per cent on a loan book of $31 million, but this has not stopped the group issuing a prospectus seeking up to $30 million through an issue of unsecured notes. The prospectus, released last Friday, shows that 12 per cent of Asset's loans are 30 days in arrears, 3.9 per cent are 60 days in arrears and 24 per cent are 90 days in arrears. “No problem”, say the directors. The directors of the company do not consider the level of arrears will adversely affect or compromise the security of the company or the ability of the company to continue providing returns to investors. Asset lends at rates that range from 2.5 to 5.95 per cent a month. The average term is three months. All loans are secured and the average loan to valuation ratio on the book will not exceed 80 per cent.