Cattles PLC said it has withdrawn its application with the Financial Services Authority for permission to take retail deposits.
In a statement, the financial services group said that during discussions with the FSA in recent weeks, it became clear that permission is unlikely to be forthcoming until the unprecedented turmoil in the financial markets has stabilised and the terms of the group's renegotiation of £635 million of its bank facilities are known.
Cattles has withdrawn its application until such a time as there is greater clarity on the terms of its bank facilities and the wider market situation.
Earlier this month the group announced plans to reduce costs, preserve liquidity and strengthen the capital position of the business during 2009. Cattles and its lending banks continue to have constructive discussions about the scope and terms of the renewal of the group's bank facilities which are due this year. Cattles' proposals do not include any reliance on funding from retail deposits.
David Postings, Chief Executive of Cattles, said: “Demand for our products remains strong and the croup continues to trade profitably and in line with expectations."
Cattles currently focuses on non-standard consumer credit, debt recovery and invoice finance.