Replies to post #59082 on Innerscope Hearing Technologies Inc (INND)

[Madame Butterfly]

so simple.
1+1 = 0 if you use toxic notes again for loans
1+1 = 2 if you use proper funding sources in the meantime until the money rolls in and then you won't need any more of those types of loans

[mary777]

I should add that with my company, the factor takes 3.5%. It might be in the 4%-6% range for Innerscope, until their volume increases and they can negotiate a better rate.

INND gets a PO from WM for 1 million.
The factor pays INND immediately 1 million - 5% = 950k
60 days later, the factor collects 1 million from WM

All sales above the 2.5 million line of credit, will be paid to INND - 5% when WM pays.

This is a big win for INND as they gain traction. As more sales incur, their line of credit with the factor increases.

[Ihub Rookie]

Thank you for the fantastic explanation. This is exactly how it works.

[Midwestrader]

ROFLMAO.....yeah by DUMPING SHARES to pay the DEBT.

It's not debt. A factor creates a credit line of 2.5 million that they will guarantee payment on before receivables hit. It's like 2.5 million in insurance that they will pay you, before Walmart pays them.