Increased Credit Defaults Risk: As ATLC lends to consumers with lower credit scores, an economic downturn, rising unemployment, or increased inflation could lead to a significant rise in loan defaults and delinquencies, severely impacting profitability and asset quality.

Regulatory Compliance and Enforcement Risk: The consumer lending industry is subject to extensive and evolving federal and state regulations. Non-compliance with laws like TILA, ECOA, UDAAP, or new state-specific lending restrictions could result in substantial fines, operational limitations, or costly legal actions.

Funding and Liquidity Access Risk: ATLC relies on access to capital markets, bank credit facilities, and securitization to fund its loan originations. A tightening of credit markets, a decline in investor confidence, or an inability to renew existing funding sources could constrain their ability to grow or even sustain operations.