Replies to post #9693 on Praxsyn Corp (PXYN)

[OhManIDied]

Cd, I have to agree with Rhenarium about the factoring.

They are selling the rights to collect on their ARs, for a fixed price which reflects the amount of work required to collect the money (based on the quality of the debt), not lending them out.

There are various types of factoring deals and sometimes the terminology overlaps for different type of financial deals but if they were to realize profits on their sold ARs after the factor finished collecting on them, why would they add the difference (in known value and sale price) on the balance sheet as a financing LOSS?

PAWS

[cdhames]

I understand the math perfectly but thanks for the insult anyway.

I'm not arguing with your math. This is what you continue to fail to see. Again, I'm not arguing with your math.

My point is and has always been that you're wrong on your understanding of factoring. The Factors fee must be acccounted for as a Loss. That's reflected under "Loss on receivables sold to factor 873,201"

Your argument is that the story ends here. The Factor keeps all of the A/R and I'm telling you that's not the case.

At a later date, the Factor will forward the remaining, collected A/R as a retainer, less fees. You will see that retainer then reflected as a debit under Cash.

This has nothing to do with invoice discounting...