Alex Shvarts
👤 SpeakerAppearances Over Time
Podcast Appearances
I go to a factor, I say, here's a purchase order from Home Depot for a million, give me a half a million.
When I deliver those goods, Home Depot is writing the check to the factor and I get the difference.
And so in factoring, you're underwriting the buyer.
Right.
Who's buying the product?
How credit worthy are they?
So that's a little and there's usually they're very short term type of deals.
Right.
With us, we're buying receivables.
We don't know if they're going to have.
So we're looking at, let's say, a restaurant.
We look at 12 months of receivables.
They're averaging one hundred thousand dollars a month in sales.
And that's how we're going to calculate our offer.
But what happens if their sales go down?
It's a hurricane.
It's COVID.
There is no guarantee that they're going to have receivables.
So because we reconcile their sales constantly, right?
So we do reconciliation.