Spongetech Delivery Systems, Inc. (fka SPNGQ)

[Christy from Google]

The 4,000 is a constant. (4% of 100,000)

The item that does change is the AR turnover days. The shorter the turnover the more the factor makes. So in Month 3 the Factor is giving Mosky 100,000 for sales, and at the same time collecting 100,000 (Month 1 sales) from the SPNG customers. The net effect to him is $4,000 per month profit (assuming he's using his own capital). Its fairly simple.