You're correct the percentages wouldn't change.
The breakdown is the following on submission of a 'job' I guess you call it to FCC
35% to BIG
24% commission to FCC
41% to the bank account controlled by FCC and released to BIG once a video is completed and a customer accepts the $1,000pm package.
BIG can substitute a customer if they choose not to proceed after video shooting.
If BIG can't find someone within 120 days for the $1,000 pm package they pay back everything PLUS 24% fee. So being fronted 35% working capital could turn into a 124% cost if they don't find a customer. In fairness 41% is already in the bank account but they would have to pay the original commission and the 24% penalty and their 35% back.
That's why I'm saying its high risk. If the defaults start, it's lights out imo.
- Forums
- ASX - By Stock
- BIG
- Ann: Response to ASX Query Letters
Ann: Response to ASX Query Letters, page-259
-
- There are more pages in this discussion • 130 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)