MOP Environmental Solutions (MOPN)

[alliecorp]

That's my take on the impending news too. It's hard to predict an exact day for this type of news but we should and could hear anytime this week.

Aside from that, MOPN has been busy working on other deals too. No doubt we'll be learning more about Enbridge and so forth in the not to distant future.

Got a request into the TA for an update, too.


And here's little repost for anyone who missed this earlier thanks to DFS.

Factoring’s Role in the BP oil spill

The oil spill in the Gulf of Mexico has created huge demand for a wide array of resources needed to help in the cleanup process. There is probably no better example than MOP Environmental solutions Inc. They have a patented material used to clean up oil spills. Obviously MOP was going to see a large increase in demand for their product. However huge spikes in demand can create cash flow issues, especially when offering 30 day payment terms.

This is where Bibby Financial Services enters. They provided a $750,000 factoring faculty so that MOP would have the financial capability to complete orders and keep the clean up efforts going at full pace.

This is a prime example of how factoring can help a business’s cash flows. There is no doubt the MOP was working at full pace to move as much product as possible. However, this can create huge cash flow issues. MOP will be forced to finance all production costs as well as the large purchases of raw materials that not only will be needed to replace the inventory that has been sold, but also anticipate materials needed to meet increasing demand. Meanwhile, MOP will also be financing their customers purchase for 30 days or longer. This can easily stretch the finances of a company and create a short term situation where too much cash is flowing out and not enough is flowing in. Without factoring, a fast growing company would eventually be forced to pass on potential business as they would run out of cash necessary to finance new sales. However MOP was smart and factored their invoices which gave them the ability to turn their 30 day debt into immediate cash. This is cash they used to finance sales, and meet the crucial demand for their product in the Gulf of Mexico.

Factoring is also an extremely flexible financial tool. This is important for MOP because there is no good way to anticipate how big this spike in demand will be or how long it will last. However, factors are only financing for 30 days. This means that the executives at MOP can adjust the level of financing they receive from their factor as conditions change.

Factoring provided the financing needed to keep the cleanup efforts in the Gulf going as well as helping a business capitalize on current conditions. This is a prime example of how factoring funds should be utilized. For more information on this story click here.
http://factordirectcapital.com/blog/factorings-role-bp-oil-spill/