American Scientific Resources (ASFX)

[Dr P]

Interview with HARTSKO's Rich Eitelberg


...(excerpt)... For those who can’t get their banks to tumble, there are lots of independent asset-based lenders ready to pick up the slack. Always for a price of course, and often with some pretty strict ground rules of their own. “We demand our clients have at least 30% gross profit margins,” says Richard Eitelberg, president and founder of Hartsko Financial Services, LLC, which does mainly purchase order financing and letters of credit from its offices in Bayside, New York. “And our deals usually run 90 days.”

The fees for his loans, in that 90 days, can usually shave at least 7.5% off a 30% gross profit. “We don’t charge interest,” Eitelberg explains. “This is all fee-based, because two, three, four percent a month over prime can be seen as usury in some states. So the client’s got to say to himself, ‘I can’t get financing and is 23% better than nothing?’”

“We don’t want to replace a bank lender if he can get it,” Eitelberg says. “This is when you can’t find money, but you’ve got deals to do and do not have the capital structure to do it.”

In the past, when money was cheap and plentiful, it seemed that in addition to ready credit, there was always somebody looking to buy into companies with solid cash flows and good prospects. This, of course, meant that the existing owners had to give up a piece of their enterprise. But with the growth horizon seemingly unlimited, that often seemed a small price. These days, not so much.

(full interview here)- http://forward.msci.org/articles/0510complicated-credit.cfm" rel="nofollow" target="_blank" >http://forward.msci.org/articles/0510complicated-credit.cfm

GREAT NEWS !! Looking forward to biggger news coming SOON!

GLTA ASFX traders/investors