Mortgage company Firstfolio has hit a snag in its plan to recapitalise the business and has called in an adviser to help it consider its options.Firstfolio informed the Australian Securities Exchange yesterday that IZN Investments ACE Management, which last year agreed to invest a minimum of A$39.5 million of equity capital as part of a $50 million recapitalisation, had missed the January 20 deadline for transferring the funds.The investor was unable to say when the funds would be transferred.The board has engaged Grant Samuel Corporate Finance "to consider potential alternative transactions".Proceeds of the equity raising are to be used to pay a Commonwealth Bank senior debt facility of $16.5 million, a National Australia Bank facility of $1.4 million and a related party loan (the so-called Welas facility) of $13.5 million. The plan is that the company will have $16.4 million for working capital and marketing and to finance asset growth once it has paid the debts.Firstfolio went on a buying spree between 2010 and 2012 and ended up with a highly geared business just as the housing finance market slowed to a standstill.It revealed last year that without a recapitalisation it would have difficulty repaying debt and risked breaching its loan covenants. There would be material uncertainty as to whether it would be able to continue as a going concern.For the year to June last year, Firstfolio made a net profit of $1.3 million - unchanged from the previous year. Revenue was up 2.2 per cent, to $82.2 million, and its loan book declined by $1 billion, to $18.9 billion.In a statement issued yesterday, it said: "The board continues to believe the recapitalisation proposal is the best option to meet the company's funding requirements, and, at this time, the company has not exercised its right to terminate the recapitalisation proposal subscription agreement and underwriting agreement."Firstfolio does not currently have other arrangements in place to obtain funding.Late last year, mortgage lender Resimac made an eleventh-hour bid to fund Firstfolio's recapitalisation with a $7.7 million fully underwritten rights issue and a $15 million loan. Firstfolio rejected the approach.