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14:52
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Originally posted by StefanF:
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APT will need more warehouse funding facilities to increase the volume. That's not debt, that's not equity, it's a simple funding facility that's created with banks. Over time, these funding facilities become cheaper as the business model has more time to prove itself and become derisked.
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My understanding of warehouse facilities, although off balance so to speak, still require a slice of equity to contribute to the total loan advanced. So for instance, if the loan meets the parameters of the warehouse agreements the company might contribute 20% and the warehouse facility 80%. If this is the case with APT it will need more equity from issuing more shares and retaining profits, when it makes one.
