Nathan Latka

Is that you're going to get back to 100?

But Alex, for you, what's typical though, right?

So if you're taking 10% of monthly receivables, do you typically get paid back on the receivables you purchased within five months or do you model for 12 months or 15?

And Alex, in fact, during a key component you have to model is obviously the discount rate.

The 100K example you just gave us where you wire 90K up front would represent a 10% discount of future receivables.

Is that your target typically?

And the quickest way, at least on a year-long facility, now yours, again, go from eight to 16 months, depending on the percent of monthly receivables, but a 28% discount rate paid back over 12 months represents about a 52% effective interest rate.

How do you get consumers or how do you get these businesses comfortable with that kind of interest rate?

Well, no, but Alex, sorry, just to take a step back.

It's not a loan, but it's a true sale.

They're selling you future receivables, which is why you don't have to deal with recharacterization lists and usury and lending laws, right?

That's the way you get around that as a factoring business.

You can still go calculate.

Yeah, but the reason factoring is a thing is because it's a true sale.

You don't have to worry about usury laws in certain states and lending licenses and things of that nature.

So my audience will understand this.

They're, they're sort of savvy find.

They'll understand this completely, but I just want to underscore paying back that 10 K cost of capital in three months.

If the company grows really fast and receivables grows really fast, it's very different than paying back 10 K over someone that delays their payments.

And it takes three years.