The nature of ART Business Loans borrowers provides a high risk of default and irrecoverable debts. All forecasts have been made in line with an average bad debt rate over the last five years of 16%.
The Directors will seek to mitigate these risks through prudent management policies in ART Business Loans.
ART Business Loans has established loan procedures that will seek to target bad debt write-offs at a figure which will be covered by income generation on the loan book and the Enterprise Finance Guarantee scheme.
ART Business Loans also has funds available in its wholly owned subsidiary company (Aston Reinvestment Guarantee Company Limited) to provide some cover in the event of any shortfalls.