Finance Saving on Reduced Receivables Collection

Hi
I’m reading ACCA Technique Article: Alternative Receivables Collection Techniques. Can anyone let me know detailed calculation of Finance Saving on Reduced Receivables Collection for the following question:

Velmin Co has a turnover of $700,000. Receivable days are currently 48 despite the company only offering 30-days’ credit and bad debts are currently 3% of turnover. Velmin Co finances its receivables using its overdraft which has an annual interest cost of 8%.

Velmin is considering the use of a factor. The factor would charge 4% of turnover for a non?recourse agreement and would expect to reduce receivable days to 34 and bad debts to 2%. The factor would lend Velmin 75% of the outstanding receivables and would charge Velmin 1% above their current overdraft interest cost. It is anticipated that using the factor would reduce administration costs by $6,000 per annum.