"I may be wrong on this but I thought the factoring arrangement...

"I may be wrong on this but I thought the factoring arrangement in on receivable invoices. In which case they don't get money from the factoring till the goods are delivered and invoices are issued."

Yes, that sounds more correct to me. So if they have $2m in manufacturing orders and GP is 65%, 2/0.65 = $5.7m revenue booked as I see it for this current group of orders.

Once they issue invoices they can then get another $3-$4m, so they'll be able to comfortably pump that into more manufacturing and they're away.