after seeing its funding lines cut by 15 percent.
block discounting funders had withdrawn from the market and another
had reduced its funding line.
In addition, a rise in customers requesting payment variations
has led to a “consequent impact” on cash flow and the timing of
profits, the company said. This has led the lessor to increase its
provisions for bad debts.
“Over the last few months we have taken steps to reduce the
average size of our loans,” said Mike Johnson, chairman of 1pm. “We
have also implemented a wider review of our cost base which is
already starting to yield tangible cost savings for the group.”
The company has already started discussions with alternative
funding sources, the company added, although in the short term,
both new business growth and financial performance would be
materially below market expectations.
“Whilst short term business growth will be lower, we are
confident that our strong relationships within the market place
will enable us to develop new funding sources to take advantage of
future opportunities,” Johnson said.