Replies to post #313742 on Spongetech Delivery Systems Inc (fka SPNGQ)

[overachiever]

Spin it anyway you want, if a company can get a factor to buy in then its real.

The factor doesn't care about the credit worthiness of the company for which it is factoring. It only cares about the quality of the paper it is asked to buy. The factor is loaning the money based on the ability of Walmart or CVS, to pay. It pays SPNG the money Walmart owed it at a substantial discount to the original billing and then collects the money from Walmart. So just because a factor decides to take SPNG receivables paper, this does not mean it is an endorsement of SPNG.

The factor doesn't even care if the goods are being sold for a profit or a big loss. It matters naught to them.