Replies to post #313821 on Spongetech Delivery Systems Inc (fka SPNGQ)

[Welcome2Pinkyland]

yes - if they had to pay 4.67% every month on that same $30,000 it would be 56% - but what does that have to do with them selling their $30,000 in receivables 1 time for 4.67%?

[harvard homeboy]

12 mos. X 4.67% = 56.04%. Thats a lot of vig.


It's especially a lot of vig for a company whose pretax margins are in the neighborhood of 20% or thereabouts. And they sure ain't gonna make it up on volume either.

GLTA