Clearfield, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 13 - Financing Receivables

Note 13 - Financing Receivables	12 Months Ended
Sep. 30, 2024
Notes to Financial Statements
Financing Receivables [Text Block]	Note 13. Financing Receivables Nestor Cables factors certain of its accounts receivable, with recourse provisions that are accounted for as a secured borrowing. Nestor Cables has a total factoring liability of $2,920,000, $6,289,000 and $4,391,000 as of September 30, 2024, 2023 and 2022, respectively. Nestor receives cash for 80% of the receivable balance from the bank initially and the remaining 20% when the invoice is paid up to a limit of €12.5 million ($13.9 million). Due to the conditions mentioned above, these transactions do not qualify as a sale and are thus accounted for as secured borrowing. The contractual interest rate on Nestor’s factoring arrangements is the 3-month Euribor rate plus a range of .75% to 1.3%. The average interest rate for the year ended September 30, 2024, 2023 and 2022, was 5.12%, 3.89% and 2.14%, respectively. These agreements are indefinite with a termination notice period ranging from zero to one month.

Note 13 - Financing Receivables

12 Months Ended

Sep. 30, 2024

Note 13. Financing Receivables

Nestor Cables factors certain of its accounts receivable, with recourse provisions that are accounted for as a secured borrowing. Nestor Cables has a total factoring liability of $2,920,000, $6,289,000 and $4,391,000 as of September 30, 2024, 2023 and 2022, respectively. Nestor receives cash for 80% of the receivable balance from the bank initially and the remaining 20% when the invoice is paid up to a limit of €12.5 million ($13.9 million). Due to the conditions mentioned above, these transactions do not qualify as a sale and are thus accounted for as secured borrowing. The contractual interest rate on Nestor’s factoring arrangements is the 3-month Euribor rate plus a range of .75% to 1.3%. The average interest rate for the year ended September 30, 2024, 2023 and 2022, was 5.12%, 3.89% and 2.14%, respectively. These agreements are indefinite with a termination notice period ranging from zero to one month.