GREY:TSTIF - Post by User
Comment by
hipfneron Dec 23, 2016 1:19pm
146 Views
Post# 25640714
RE:confused about this receivable factoring
RE:confused about this receivable factoringCareful bobobot, you risk getting abuse heaped down on you for asking good questions.
If you go back and read the press release, TSO3 is extending the normal 45 days that Getinge has to pay for delivery (from TSO3 to Getinge) to 90 days.
It can be read as: Getinge gets the product and then it sits in Getinge for some time - perhaps for testing, labelling, packaging - before being shipped to the end customer and invoiced. Getinge was unwilling to carry the sterilizer cost for a potentially long time and decided that 90 days to pay the invoice was more appropriate. TSO3 doesn't really have a lot of choice except to agree, since they are the only distributor.
It could be just "good business" on the behalf of Getinge, getting longer terms. But it costs our company (assuming you own shares, as I do)