The company burned 360 million in Euros cash in the quarter, and analysts noted that the total would have closer to 500 million had the company not stepped up factoringofreceivables.
Eighteen months ago Pierce turned to an alternative form of financing called factoring--the process of selling receivables at a discount to raise quick cash.
Strictly speaking, a pure factoring arrangement has the supplier of funds acquiring the receivables, along with all the risks of nonpayment or late payment.