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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Resry who wrote (17420)	2/14/1998 12:05:00 PM
From: Mohan Marette	Respond to of 97611

Resry: Thanks for that excellent explanation of Factoring,much obliged indeed.

To: Resry who wrote (17420)	2/14/1998 12:10:00 PM
From: Spots	Respond to of 97611

>> In my small business, we pay 2% over prime for the loan, and a 1% fee. A company the size of compaq would pay substantially less. Ok, I consider myself instructed. Thanks. At this rate for 90 day receivables, that would amount to (well) over 95%. And as you say, Compaq would probably get a better rate, probably in the 97% range as OB said.

To: Resry who wrote (17420)	2/14/1998 1:04:00 PM
From: Weekapaug	Read Replies (1) \| Respond to of 97611

Resry, I'm sure you are more familiar then I about factoring. But, I have doubts about CPQ receiving a substantial lower rate than you speak of? Reason-based upon the fact they did alot of business with small distributors. As you said " credit worthiness of the people they sell to." Up until Radio Shack deal, that was everybody and there brother, so to speak. Montgomery-Ward was no small company and they went bankrupt? Many of the large retailers have poor S&P ratings? IMO-they may surprise you, if you were to findout what amount they pay? Ken