Yield improves for FlexiGroup 18 August 2010 4:46PM Ian Rogers High-priced lease finance for small business and households is producing a reasonable return for equipment finance company FlexiGroup, which yesterday said it will report a full year "profit before amortisation" of around $60 million, and $2 to $4 million ahead of earlier guidance. This profit includes a tax credit of $18 million.Net profit on a like-for-like basis will increase by 24 per cent to $41.6 million, FlexiGroup said. The company will report full financials next Tuesday.Other highlights cited in a release to the ASX include negotiation of "$190 million in new and increased bank funding facilities". FlexiGroup was promoting the forthcoming conclusion of these bank loans six months ago, so it's not clear how new they are. On this occasion the group did not repeat the February claim that the new facilities would reduce funding costs by about 250 basis points.The group did say that it originated $535 million in new business volumes over the 2010 financial year, a rise of 10 per cent. The company said it had the "capacity to support" $1.3 billion in new business over two years.The group obtained additional funding from Challenger Life Company, which subscribed to $30 million in notes including what may be a subordinated tranche. FlexiGroup did not spell out the term or yield on the notes but did say it obtained AAA and AA credit ratings from an unnamed rating agency. This agency is yet to publish this rating itself.FlexiGroup said bad-debt charges were 10 per cent below the level of 2009. In the first half of the financial year impairment charges represented more than five per cent of receivables.