The short-term lender Money3 says its business is sustainable under the Australian Government's new payday lending rules.The company has a network of 34 branches, where borrowers can get loans from A$50 to $100 for one month, or loans from $500 to $3000 for three to 12 months.It was this sort of lending operation that the Government had in mind when it included a cap on payday lending charges in the latest round of amendments to the National Consumer Credit Protection Act. The cap, which takes effect next February, limits the upfront fee on a finance contract of up to $2000 to 20 per cent. Monthly charges are limited to four per cent.Money3 chief executive Robert Bryant said in a statement that the impact of the legislation on Money3 would be minimal.In any case, the company has been shifting its lending activities towards higher value, secured lending. In addition to its branch network, it has a business called M3 Auto Assist, which provides secured car loans and car rental contracts. At June 30, 70 per cent of the company's assets were tied up in secured loans worth more than $5000, Bryant said.Yesterday, Money3 reported a net profit of $2.5 million for the year to June - up 5.1 per cent on the previous year.The company's loan book has increased by 43.7 per cent to $17 million. Bad debts fell from $1.8 million to $1.5 million - 8.8 per cent of its loans.