Double Brokering

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Double Brokering is the re-brokering of a load to another trucking company without the consent of the original shipper. This unauthorized activity violates the Federal Motor Carrier Safety Administration (FMCSA)…

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Leveraged Buyout

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A Leveraged Buyout or LBO for short is when a company is purchased by typically a private equity firm using the purchased company’s assets and cash flow to acquire a…

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Debtor-in-Possession (DIP)

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Debtor-in-Possession (DIP financing) is funding provided to a company that has filed for chapter 11 bankruptcy protection from creditors. It is typically available to companies where lenders believe the company…

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Concentration

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The maximum amount for which a factor will fund on a single customer in a client’s portfolio. This is often expressed as a percentage of the factoring volume for a…

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Closing Costs

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Costs involved in becoming a factoring client. Some factoring companies have no closing costs. Other factoring companies charge the cost as a percentage of the total factoring line amount. The…

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Bad Debt

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Debt that is unlikely to be collected. Unpaid invoices (an example of bad debt) is often paid for out of the client’s reserve account and or sold to a collections…

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