The financial services group Finantra yesterday announced that it would discontinue a number of its operations including factoring, medical billing, leasing and commercial finance lending. The news came with the company’s third quarter report which showed a loss of $11.31 million. This compares with a loss of $284,304 for the corresponding quarter in 1999.
Finantra’s factoring subsidiary America Factors Group is likely to be liquidated in nine to twelve months’ time.
This move will enable Finantra to concentrate on its consumer finance subsidiary, Traveller’s Investment Corp and Americap-Cap Mortgage Corp.
The reasons behind the discontinuation of the group’s factoring operation (according to Finantra’s securities and exchange commission filing) include poor financial performance, recent industry downturns and the deteriorating business operations of several of American Factors’ big borrowers.
