Prime + 2% isn't necessarily cheap. It's not the 10% they have on the converts, but still not cheap. If they are almost tapped out on their a/r line, how do they fill orders once they reach the limit. I'm trying to point out that financing can be a constraint on their growth. Not the worst problem to have, but still a problem. Shmolton mentioned financing their PO's, but they take a haircut on the purchase order. How much for VBDG, I'm not sure. Could be anywhere from 5-15%. So now we have increased sales, but our margins are squeezed a little due to financing costs.
