GREY:LFDEF - Post by User
Comment by
goldspeculator1on Oct 01, 2018 11:19am
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Post# 28721510
RE:Advance of 5 million
RE:Advance of 5 millionWhat financing gets done without fees? Everything from a personal line of credit, mortgage to a corporate offering.
2% is peanuts for a corporate deal.
If they end up paying 400,000 in fees to unlock 20M in capital then be thankful. and from a rate perspective this is a revolving line of credit backed against receivables so similar basis to factoring. 14% annual equates to 1.16% per month which is insignificant when you are rolling your receivables on a 30-90 day cycle. Companies typically factor this into the cost of doing business and build it into the pricing. Generally runs neutral to the borrower.
Market doesn't seem to mind and if 100k is what pisses you off with this company then I think you're invested in the wrong business.
Best of luck