Days Inventory Outstanding (DIO) measures how long your company holds inventory before it is sold or used, on average. It’s an important metric because it provides a general gauge of your inventory management efficiency. An increasing DIO may indicate slow-moving inventory, excess stock, or potential cash flow problems. Formula: DIO = (Average Inventory ÷ Cost […]
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Factoring Cost per Dollar Advanced Calculator
This calculator helps you compare two factoring proposals by calculating the cost per dollar advanced for each option. This is useful because the lowest quoted factoring rate is not always the lowest-cost option once the advance rate is considered. Table 1: Transaction Assumptions Enter the invoice amount and factoring period used for both options. The […]
Asset-Based Loan Qualification Requirements
Summary: Asset-based loans are commonly used by small and middle-market companies that need financing. Their main advantage is that they offer a flexible structure and support several types of collateral. Asset-based loans are popular with companies because these loans have fewer covenants and simpler qualification requirements than bank financing. Read “What is an Asset-Based Loan? […]
What is Special Assets? What Should You Expect?
Summary: The Special Assets department handles loans that are out of compliance and in trouble. Lenders assign loans to this department to mitigate potential losses. This change marks a turning point in your relationship with the lender, as they likely want to exit the lending relationship. A company can improve its chances of success in […]
Asset-Based Loans – Costs and Rates Explained
Asset-based loans (ABLs) are a type of financing that enables companies to get funding based on their assets. These loans are popular among small and midsize businesses because they offer simpler qualification and compliance requirements. While asset-based loans are more expensive than conventional bank financing, they are cheaper than most other solutions. This article discusses […]
What is a Ledgered Line of Credit? How Does It Work?
Summary: A ledgered line of credit (LLOC) is a revolving financing facility secured by accounts receivable (A/R). The line’s availability is determined by the value of eligible receivables and the terms of the facility. Ledgered lines of credit are more flexible, easier to use, and simpler to manage than comparable solutions. This article explains how […]
Trucking Load Profit/Loss Calculator
This calculator allows you to estimate whether a trucking load is profitable. It requires only 4 values: Trip Details Line Haul $ Loaded Miles Deadhead Miles Average Cost per Mile $ Loaded Rate per Mile $ 3.333 Actual Rate per Mile $ 3.030 Approx. Profit/Loss per Mile $ 0.730 Trip Profit and Loss Summary Total […]
Rate per Mile Calculator for Truckers and Owner Operators
This rate per mile calculator helps truckers and owner-operators estimate what shippers are paying on a specific lane. It uses brokered load rates, mileage, and an estimated broker markup to determine the shipper rate per mile for each direction. Use the results to compare brokered rates with potential direct-shipper pricing. For a detailed explanation, read […]
Cost Per Mile Calculator for Owner-Operators and Truckers
This calculator helps you estimate your break-even cost per mile. It has four parts: fixed expenses, variable expenses, total monthly expenses, and cost per mile. Enter or modify the editable values, and the calculated totals will update automatically. For a detailed explanation of this calculator, read our full guide: “How to Calculate Your Cost Per […]
Factoring for Auto Transport Companies and Car Haulers
Summary: Auto haulers frequently have trouble finding a factoring company that can work with them. Unfortunately, many factoring companies cannot finance auto haulers due to the risk of cargo damage, claims, and other issues. This article explains how freight factoring works, why auto transport companies are challenging to finance, and how to find a factoring […]