EveryoneI don’t think you people really understand what...

Everyone

I don’t think you people really understand what factoring is.

They are not giving up 10% or 15% of their profits as some people have suggested.

They are getting 95% (and then moving to 85%) of the value of their invoices up front. They can then use that money for working capital (ie manufacturing). They get paid the balance when the funds are received from the customer (minus a free)

The fee is probably around 1% - although that is a wild guess.

Its very very good news. And yes, it means that they are anticipating $1m in revenue over the ensuing 2 weeks.

Cheers
Livas1

ps - i wish they would have announced this separately when it was arranged, as its very good news. It shouldnt have been hidding in the quarterly. The company does need to improve the communication to the market.

pps - It doesnt take away from the fact that this is a good result and well done to all involved in organising the financing

ppps - someone said this related to reveal assets. It doesnt. Its for US receivables. So that could be reveal, enertec or mfc.