[Kevin Henry-Seacoast]

You're not wrong but I am looking at all their financing for the weighted cost. If they have 200k in car notes @3.5, a bank LOC of 300k @ 4.9, and then factor 500k @ 12 then your cost of capital is 8%

There is also the freeing up cash flow from the refi which will lowers their capital requirement which will allow them to take on higher debt than the 8% requested and still be in a better net position

Or better-Just finance the business assets for under 8% and call it a day.