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Gold/Mining/Energy : Unitec Int. Controls Inc. -- Ignore unavailable to you. Want to Upgrade?

To: John B. Smyth who wrote (368)	5/1/1998 8:35:00 AM
From: Technopeasant	Read Replies (2) \| Respond to of 856

Ah! Maybe I can contribute something here. I make my living by providing a limited factoring service for small businesses. The approach John is talking about appears to be like purchase order financing, which is then switched to receivables financing when delivery is made. It is expensive, no doubt, but it is also common where the company's capital simply can't support the growth rate. The trick to managing it successfully is to switch fundig sources to the cheapest available source progressively as the work is completed. The annual effective interest rate is high, but in practice the rate is only paid for 2-3 months and when looked at from the perspective of the total cost of the project is a minor, (although still significant) part of the whole. Steve