Can anyone explain to me.Why SKG would borrow $850k at an...

Can anyone explain to me.

Why SKG would borrow $850k at an effective interest rate of 18%?

IF....SKG had this deal with the Russians.

Wouldn't it have been easier to walk into any bank.....present the contract and its terms.....and secure a 180 day Bank Bill at 8%

Or walk into anyone who deals in factoring with the same contract and give up 10% to them?

To pay 18% and dilute shares just does not stack up in my mind IF...SKG had this "binding" contract.

TIA