Decision Diagnostics Corp (DECN)

[Leirum]

Of course it is cheap.

Let's say you produce goods for 1 Mio and sell it. Now you have to wait 30 days to get the Money from the buyer. In the meantime you cannot produce more goods because you have no liquidity.

If you have a creditline, you do not have to wait for the buyer to pay you to get the liquidity, you get it from the creditline.

So instead of 1 deal in 1 month you can make 2 deals or 3 or 4 deals.

If you break down the interest cost of 25 % per month you get a cost of 2 % which you add to your production costs. What is 2 % if you can turn your goods 2 or more times around instead of only 1 per month. This is called velocity of goods.

For this reason a lot of companies get their Money through Factoring, but there the costs are higher.

For me an excellent deal by every standart.