The boss of Non-Standard Finance denied the doorstep lender was “on the brink” after it revealed the Covid crisis had sparked material uncertainty about whether it can continue as a going concern.
NSF could be forced to ask shareholders for fresh investment as the pandemic recession imperils its access to funding.
The company, which lends money at high interest rates to more than 100,000 consumers with poor credit ratings, temporarily halted lending during lockdown and only managed to start handing out money again last month.
John van Kuffeler, chief executive of NSF, said his company had suffered a difficult and disappointing 18 months but insisted an economic downturn was an opportunity to win more business as consumers struggle to access cash.
He said: “We are not on the brink. We are a highly experienced team who know exactly what to do and