A ledgered line of credit (LLOC) is a revolving financing facility secured by accounts receivable (A/R). It combines the receivables-based structure of invoice factoring with the revolving format of an asset-based loan (ABL). LLOCs are intended for larger small businesses and middle-market companies. These companies have the financial controls and reporting capabilities needed to support […]
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Ledgered Line of Credit vs. Asset-Based Loan
A ledgered line of credit (LLOC) and an asset-based loan (ABL) can both provide flexible working capital. However, they work differently. This article explains the main differences between the two products so you can decide which option is better suited to your company. We cover the following: 1. How do they work? Both a ledgered […]
How to Move from Factoring to a Ledgered Line of Credit
Summary: A ledgered line of credit (LLOC) offers a good alternative for companies that have outgrown their invoice factoring facility but aren’t ready for the heavy covenants and compliance requirements of a bank line. Moving from factoring to a ledgered line of credit, or another revolving facility, requires careful coordination to ensure a smooth transition. […]
Useful Trucking Calculators for Owner-Operators
Here is a list of useful trucking calculators that are designed to help owner-operators and small fleet owners. They can help you make more informed business decisions before committing to a lane or load. 1. Cost per mile The cost per mile calculator helps you build a detailed view of your operating costs and estimate […]
Asset-Based Lending for Construction Subcontractors
Summary: Larger construction subcontractors can be good candidates for asset-based loans. They typically have a strong client base and a good asset mix. However, finding an asset-based lender that works with subcontractors can be challenging. There are several reasons for this. This guide breaks down asset-based loans, detailing their structure, qualification requirements, alternatives, and lender […]
Asset-Based Loan Alternatives for Midsized Businesses
Summary: Asset-based loans are an attractive option for middle-market companies due to their flexibility and relatively low cost. However, they are suitable only for companies with good financial management due to their strong covenants and operational requirements. This article examines stand-alone asset-based financing solutions that can be used as an alternative to asset-based loans. These […]
The Smart Way to Expand Your Trucking Fleet
Summary: Many owner-operators enter the trucking business hoping to expand their carrier into a large trucking fleet. But few owner-operators grow their companies using a methodical approach. Instead, they jump at the chance of growth without understanding how to grow the business. This approach seldom works and often ends up in financial failure. We recently […]
How to Launch a Trucking Company the Smart Way
Becoming an owner-operator can be very profitable if done correctly. It can also get you into serious financial problems if you are new to the industry and follow the wrong steps. This article was written to help aspiring truckers increase their chances of success in the industry. We cover the following: The information in this […]
Smart Strategies for Business Cash Reserves
A cash reserve is a set of funds that a company puts aside to handle financial challenges. It is one of the most important financial resources that a company can develop. A reserve provides financial stability and allows you to operate the business more effectively. Unfortunately, many business owners ignore the importance of having a […]
How Much Debt Can Your Company Handle Safely?
Summary: A heavy debt load can leave a small business vulnerable to financial problems. The business won’t be able to respond to changing market conditions or business emergencies. Unfortunately, many small and midsized companies fail due to excessive debt. Everyone agrees that too much debt is bad. Despite this, there is disagreement over the amount […]