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Re: holter post# 5454

Monday, 08/03/2015 8:33:48 AM

Monday, August 03, 2015 8:33:48 AM

Post# of 50028
Holter - I believe we shareholders are in a foot race between illiquidity and brand awareness both of which requiring capital inflows of one form or another. If Mr. Eakle and his management team can find a banker who'll factor their receivables (either from their distributors or from their retailers, as the case may be), we ALL WIN.

For the uninitiated, FACTORING is a financing method provided by commercial banks to small businesses with viable accounts receivables. Essentially the banker provides a loan to ALKM collateralized by their sales accounts receivables at a percentage discount to the book value of the receivables.

This gives the struggling small business managers the funds they need (without having to dilute ownership) on a month by month basis at a reasonable interest for the risk level they represent to the commercial bank, say prime + 5% or something like that. It's a WIN, WIN, WIN. Management wins because they get the working capital loan they need to manage the company's growth. The banker wins because he/she gets a new commercial loan on the books with the deposit accounts of a viable small business. Shareholder win because we get a growing investment value with NO MORE DILUTION.

Hope Mr. Eakle chooses this methodology to finance our collective futures together.

GLTA!