Imagine running a lending business that had no sensitivity to the borrower's ongoing employment or income. Add to that high interest rates, borrowers with little sensitivity to interest rate changes and relatively low impairment costs.That is the business of "event lending" according to its best-known Australian exponent, Impact Capital.Impact lends to people involved in family law property settlement who need money for legal fees and living expenses, people making personal injury claims, beneficiaries of wills and estates and property vendors who want to cover their marketing costs.It operates through a referral network of solicitors in Australia and New Zealand.In an investor briefing filed with the Australian Securities Exchange yesterday the company outlined what it believes are strong prospects. It expects to report pre-tax profit between $3.8 and $4.1 million for the 2007/08 financial year. Last year's normalised pre-tax profit was $2.5 million. The company took a charge of $2.4 million after withdrawing from an unsuccessful offshore venture and reported a loss of $300,000.Impact has a policy of paying 25 per cent of net profit as dividends, which are franked. Impact expects its gross loan book to hit $100 million in the 2008/09 financial year. The gross loan book was $52 million at the end of the December half and has grown from $39 million in 2007 and $19 million in 2006.The company is funded by a $50.5 million BankWest facility with a term to 2010. The rate is set at the bank bill swap rate plus 1.25 per cent and the facility fee is a fixed 0.5 per cent.Impact is earning a nice margin on that funding. Matrimonial property settlement loan rates are between 15.95 and 21.95 per cent with an assessment fee of between four and eight per cent and a 5.5 per cent annual fee. The average loan size is $35,000, 82 per cent of loans are repaid within 12 months and 98 per cent within 24 months. The repayment source is the asset pool that crystallises upon property settlement.Impact's other loans follow a similar pattern. The personal injury pre-settlement loan is offered at 24.95 per cent with an assessment fee of eight per cent of the principal value. Property marketing finance is available at 15.95 to 18.95 per cent, with a $300 fee.In the December half the company made an $800,000 provision for impairment, equivalent to 1.5 per cent of the gross loan book. At the end of the 2006/07 year the company made a provision of $600,000, equivalent to 1.5 per cent of the $39 million loan book.The risk profile of the business tends to be stable because the financing decision is based on an assessment of the right of the borrower to a claim or an asset pool prior to the disbursement of the funds.Impairment is usually the result of the borrower dying before settlement or giving up on the claim.The company said it was confident of obtaining further funding and it has new products on the drawing board.