Loan losses doubled to $10.6 million from $5.0 million in the P&L of Asset Loans for 2007. This may be a cost of doing business.This could have left the company breaking even after recording a profit of $1.4 million last year.But instead the company reported a profit of $6.4 million. One reason is an item of $6.5 million in other income that the notes to the accounts explain is a "change in fair value of an embedded derivative in an option held by the consolidated entity to acquire a 51 per cent interest in Jag Marine Pty Ltd."Asset Loan offers "fast loan approval, short, medium and long-term asset loans from $25,000 to $2.5 million" says the company website.Mortgage loans fell to $16.9 million at June 2007 from $19.0 million at June 2006.Asset Loans is feeling the fall-out from the collapse of some other financiers in Australia and the more general tightening on the availability of credit.In a note to the accounts the company wrote that "if the company does not raise sufficient funds from unsecured notes or other forms of cash, there is no certainty as to whether the consolidated entity may realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report."