Troubled finance company Geneva Finance is closing its branches and laying off staff, but said it would continue to lend through a direct lending centre and mobile managers.
Geneva Finance, which defaulted on debenture repayments earlier this month, is seeking approval for a loan moratorium as it struggleswith a lack of cash and tries to stabilise its current position.
"We've shut our branches and we're moving to a different model. We're still there, we're still lending, not much has changed.
"This is a challenging time for the whole industry, and all companies are reducing expenditure."
Geneva had revised its business plan in September, and that included staff cuts and closures among its 21 retail branches.
Geneva's board and management, in consultation with its trustee, is holding a meeting for all investors on November 5 to request a moratorium on all investments until April 2008.
Earlier this month, Geneva, which mainly offers hire purchase and personal and small business loans, said it had cut back the number of car dealers it dealt with.
Rating agency Standard & Poor's has lowered its ratings on Geneva to the default-level D from B-minus, but trouble was signalled last month when S&P warned of a downgrade due to an increased likelihood of default. The D rating is also used when a bankruptcy petition is filed.
