I can also share some correspondence from the company: My...

I can also share some correspondence from the company:

My question:
I'm also curious as to why Tech Mpire uses debtor factoring? I realise payment terms with affiliates are shorter than payment terms for Tech Mpire's clients, however our company appears to have a healthy enough cash balance to support its working capital needs. Could you please provide a brief explanation?

Answer from company:
Regarding the debtor factoring facility, in the past we have used it for drawing down funds against a number of debtors to assist with cash flow management. However, as you have identified, the company now has a healthy cash balance and the liability was repaid in full in January 2016 since when no further drawdowns have been made. We only incur charges when the facility is used and so we have not cancelled it at this stage despite not having made recent use of it. The facility is limited to a maximum of USD $1.0m subject to adequate availability of debtors for factoring.

IMO the enticing thing about this company is that as we move into cashflow positive territory, we have a share count well below 100m (including options). A steady upward trajectory in profit will add significant economic value to the company.