South Canterbury Finance will post a loss for the first six months of the 2010 financial year and is on the lookout for new funding.
The company, now part of the Southbury Group, had a troubled year last year due to bad debts and funding problems.
New chief executive Sandy Maier says preliminary results for the six months to December will show a loss when they are issued in the coming weeks, and it's clear that further provisioning will be needed because of impaired assets.
The results will also hit the $US100 million the company had to repay American investors from a private placement.
Mr Maier says Forsyth Barr has been chosen to run the upcoming capital raising.
Mr Maier says he's carried out a thorough review of the business and is encouraged by investor support - with more than $1.7 million of new investment per day during January.
South Canterbury Finance has filed an application to take part in the extended Crown retail deposit guarantee.