Replies to post #42187 on Expo Holdings Inc. (EXPH)

[DD-214]

so then all the companies listed in my previous post are using a finance method you rate 3 out of 10?

companies such as Wal-Mart, IBM, Georgia-Pacific, Shell Oil, Honeywell, Scott Paper, Expo holdings (EXPH).. to name a few..

[TRUMPSTER!]

You say the truth is factoring is a 3 out of a 10 for a company and a LOC is a 10 out of 10. Can you prove it?

If you can't prove it then it's your opinion and not a fact.

[wallymac]

Really,

First off, are you sure it's factoring? If so how do you know?
Please provide a link to this "FACT".

Secondly, if it is factoring, there is a big advantage to it especially for EXPH. An LOC would create more debt for the company. By using factoring they will be getting access to the money for invoices much faster and they won't have to waste time and resources collecting as that is done by the bank.

As time goes on and the financial situation changes they would have the option to either completely end factoring or even to choose which accounts they wish to utilize factoring on and which they don't. There won't be any debt to pay off.

It also means that they will be building the company from work that is already produced on not on the if come.

IMO, a much better strategy.