Finance company Thorn Group has stopped originating business finance, as its tries to deal with a blowout in arrears.

This is the latest in a series of setbacks the company has suffered over the past year.

Last April it closed its 62 Radio Rentals stores and took the business online.

In May, the company determined that its business finance warehouse was in breach of one of its compliance parameters, which requires that no more than 6 per cent of balances be in arrears by more than 30 days. The breach put the warehouse into runoff.

The company originated A$4.6 million of business finance in the six months to September, compared with $73.4 million in the year to March 2020.

And a battle over control of the company ended up in a dispute before the Takeovers Panel in November.

The company has been working to resolve the business finance arrears problem and get its warehouse back up and running, but has had limited success.

At the end of September, contracts more than 30 days in arrears stood at 34 per cent. By the end of December that number was down to 14 per cent. The warehouse facility remains in runoff.

In its latest update, the company said equipment finance originations had ceased until further notice.

However, the company is working on the launch of a debtor finance product “which will leverage a disruptive digital platform”. It hopes to have the product in the market this year.