Replies to post #9418 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[now invest]

Remember ... As sales go up .. more cash

is needed... you have to pay for the product before you get paid by your customers... when you might have 4,5, or 6 million in inventory.. there is more money you need.. Until you get your recievables.. When you are growing this fast... I doubt that you can generate enough cash at this stage.. After a few quarters of "getting" the margin in your hands your Outside cash needs could be lowered... ASSUMING their growth RATE quiets down a little.. IF they are looking at $100 million for fiscal 2010 starting mid next year... well... they may still need Credit..!!!!! But that is a good thing in many ways.. JMHO..

I am helping finance a small startup.. and sales aren't the problem.. it is financing...to pay for the product up front.. The timeline is the issue...