IOU Financial Posts $2.1 Million Loss in Q2
IOU Financial’s Q2 loss was double that of Q1, according to their recently filed financial statements. The company lost $2.08 million (CAD) on $4.36 million in revenue. IOU had lost only $1 million in Q1 on nearly the same revenue. $393,814 of Q2’s expenses was a one-time cost related to contract cancellations, however.
The company lent $26.2 million (US) in Q2, down from $31.8 million for the same period last year.
Notably, the company said they are focusing on an aggressive litigation strategy against businesses who intentionally default on their loan obligations. “Provision for loan losses (net of recoveries) increased to $2.4 million for the three-month period ended June 30, 2017, up from $1.2 million for the previous year,” they stated. “The increase is primarily attributable to an increase in defaults by borrowers and partially due to an increase in the size of the loan portfolio.”Last modified: August 30, 2017