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.