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 […]
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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 the following: The wrong way […]
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 […]
Cash Flow Financing for Small Middle-Market Companies
Summary: Small middle-market companies have fewer financial options than their larger counterparts. Large companies have choices comparable to those of small companies. However, they benefit from better pricing. This article discusses cash flow financing options available to lower middle-market companies. It also includes options that are available to distressed companies. We cover the following: 1. […]
Financing Options for Distressed Lower Middle-Market Companies (“Special Assets”)
Summary: Middle-market companies that are out of compliance with their lenders are typically assigned to the Special Assets group. Usually, these companies must find a new lender as part of their workout process. Few lenders finance distressed companies in this market segment. Consequently, finding a replacement lender can be a significant challenge for lower middle-market […]
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 they have fewer covenants and simpler qualification requirements than bank financing. Read “What is an asset-based loan? How […]
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 […]
What is a Ledgered Line of Credit? How Does it Work?
Summary: A ledgered line of credit is a type of asset-based financing that enables companies to draw up to 85% of their Accounts Receivable (A/R). Ledgered lines are more flexible, easier to use, and simpler to manage than comparable solutions. This article explains how ledgered lines work, their advantages, qualification requirements, and how they compare […]
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 […]