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Re: ctp93 post# 54216

Thursday, 10/08/2009 11:20:57 AM

Thursday, October 08, 2009 11:20:57 AM

Post# of 111729
Let me clear this up....

BEHL doesnt need to have the capital OR materials on hand to build the 300 acre plant

Do you think contractors have all the cash or materials to engage in some of the large projects they take on? Of course not, it is not efficient to hold large stocks of raw materials.

It is called 'purchase order financing'

There are a lot of financial institutions, including most banks that will loan money with a deposit and proof of purchase order.

Therefore, they can get the loan in order to purchase the raw materials to build the 300 acre plant and the loan is paid back when payment is made by customer.