Great working guys on analyzing how the structure works & certainly cleared up a few loose ends. Seriously I think it should be forwarded to BIG mgt to release as they have been abysmal at explaining it.
Explains why the 24% is so high as for every dollar funded to the company they are funding 3-4 times this to the customer for 12mths which the company covers the interest for.
The question I have is re future growth under this model. The free 12mth funding incentive certainly put a rocket under the sales growth but now the company is hitting the limit of the facility where to next other than using their own funds ie. don’t draw down all 35% but maybe reduce to say 20% to spread across more customers. Of course they need cash to do this - are they profitable at current run rate?
BIG Price at posting:
$2.22 Sentiment: Hold Disclosure: Held
