specbidder, very good questions:
So the question has to be asked is what portion of the profits does GSI get?
GSI final profits will vary from transaction to transaction, but one is able to apply this figure as a very conservative estimate: 3% of gross dollars in each transaction are going to GSIEF top line. In this case, 3 million to GSIEF.
Example: 100 million accounts receivable package for a small hospital, GSIEF would have at minimum 3 million to top line revenue. At this point, all financers and processors will have been paid. Expenses that are deducted from GSIEF top line would include marketing, sales and office items.
Who are their competitors?
Is their larger companies out there who have already cornered the market?
There is no significant competition at this time, no one firm accomodates this type of accounts receivable financing, there are a few small factoring companies out there, but this is on a much larger scale. About 100 times larger in most cases.
Is their a trading market for these type of recievable notes out there?
There is not a trading market for these types of securites specifically, but GSIEF has consulted with the Stephens Co., Standard & Poors, Moodys, and other well known investment banking firms.
It is my understanding that this process started about 2 years ago, the company is following the guidelines established by these well known firms so its possible that GSIEF could make bond offerings at some point when the amounts being financed exceed any funding capabilities of its current financiers.
This business been evolving two years in the dark, folks are beginning to discover just how organized and well planned this entire operation is.
Enjoy.
