Ross Dove: Yes, so what happened is, during that pandemic, there was not enough supply to really fill our specific on boarded buyers, a lot of that supply was going to the multibillion dollar public companies in that business, who really didn’t need our capital. They have a very low cost of capital. Now that the markets have opened up, the 25 guys we’ve on boarded, are now buying more fully more portfolios. So there’s a lot bigger need for us. So our funding is been growing over the last three quarters, basically, kind of tied to the volume also growing on the selling. So there’s really kind of an empirical truth that the greater the volume is, the more the need for our services are. So as the volumes keep growing, we’re going to have to have to need more and more capital and keep funding more and more capital.
The good news is we get back more and more monthly remittances. And we have free cash flow that we can keep deploying, so there is constant growth there. As long as we stay profitable, and get back the remittances, we think we can grow it really year-over-year.
Michael Diana: Okay. And I assume because of our interest rates you’re doing you’re probably charging more to your borrowers. Is that constraining this business at all or not?
Ross Dove: No, the truth is that we haven’t really raised our capitals for store buyers that interest rates have went up. But since we’ve been really deploying free cash flow, we haven’t really had to borrow a lot of money in order to fund a lot of these deals. A lot of them are self-funded, and our ROI has been steady enough on self-funding. Obviously, as our cost of capital goes up, like any traditional lender in any marketplace, there’s going to be a pass through of the cost of capital, that we’re not looking when the cost of capital goes up to in any way gouge anybody or in any way get a premium on our cost of capital. What we’re looking to do is be a fair ethical lender and get back basically our cost to capital cost.
Michael Diana: Okay, great. I appreciate it. I’m looking forward to your first quarter report.
Ross Dove: Thank you. So do we. We’re anxious to get it out. And we’re working hard to make it a good one. You have a great day, Michael.
Michael Diana: Thanks.
Operator: This concludes the question and answer session. I’d like to turn the conference back over to management for closing remarks.
Ross Dove: Hi, this is Ross. On behalf of myself and Brian and the entire team here at Heritage Global, we’d like to thank everybody for participating. We’d like to thank all of the current investors for sticking with us. We’re highly appreciative, we’re easy to get a hold of if you have further questions. So feel free to reach out at any time, and we’d love to talk with you. If you’re a new investor and would like more information before you decided to jump on board, we’re available on a regular basis to talk with you too. So we just want to let you know, we’re thankful and we’re here to try to do everything we can to get you the right information so you understand our company, and we’ll keep on working hard. Thank you.
Operator: This concludes today’s conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
