High LeverageSignificant leverage raises refinancing and solvency risks for a lending-focused company. High debt amplifies earnings volatility, increases interest expense sensitivity, and constrains capital deployment for growth or loss-absorption during downturns, a persistent structural risk.
Negative Operating And Free Cash FlowsConsistent negative operating and free cash flows imply reliance on external funding to sustain lending and debt repayments. Weak cash generation undermines deleveraging, limits reinvestment, and elevates liquidity risk, affecting the firm's ability to finance growth without raising costly capital.
Inconsistent Revenue Growth & Margin VolatilityA negative revenue trend and fluctuating net margins signal operational and pricing pressures. Persistent inconsistency hampers predictable earnings, weakens return on equity, and complicates capital planning—structural issues that can persist absent clearer underwriting or product mix improvements.