Replies to post #313906 on Spongetech Delivery Systems Inc (fka SPNGQ)

[pantherj]

I believe it will prove exactly the opposite. If the business was good and the margins were high enough to to grow the business even under the weight of high capital costs, the question then becomes; "Why do this at all? It seems short sighted and unnecessary." Its a desperation move. Clearly no business would pay this kind of interest for working capital IF they could get money through traditional sources. The conclusion is that SPNG cannot access traditional capital markets and, therefore, must use the business form of "Payday Loans."

Business doesn't survive by doing things just because they can afford to do them. It survives by using capital and resources at the lowest cost possible to generate more capital and resources. Factoring is the worst, highest cost capital available.

[themanfromboston]

there is no proof that the business is growing and that SPNG's margins are "high enough"

SPNG has not filed financials with the SEC in over a year

The previously filed financials were deemed to have been false by the SEC.

The sales and order figures PR'ed by SPNG were deemed to have been false by the SEC

so, as you can see, there is no way of knowing where any "growth" has occurred for SPNG or that SPNG has "high enough" margins

the point is that they have high enough margins to grow the business even under the weight of high capital costs