Originally Posted by
Tony Two Gloves
I agree, small Finance Companies using a debenture funding model will find it near impossible to attract retail deposits. That on top of the compliance costs would make it near impossible to be profitable unless you had a significant book or large amount of equity. Finance Direct has neither of these.... I have had Debenture stock with them in the past but would not do so again espically now as they do not have a much larger parent supporting them. Not sure what the plan will be for them in light of funding issues I suspect they will continue to broker loans and wind the book down to the point they can cancel their Prospectus.
As to where I get my info.......Enumerate is on to it !! and of course a couple of well placed sources :)