Factoring For Trucking Companies

As discussed in our Factoring and Accounts Receivable Financing course, it is very important to have a good method of determining when to use factoring. These methods all involve establishing a minimum cash balance, and factoring when cash-on-hand falls below this number. The equation for determining this cash balance is:

In our Factoring course we cover this equation in depth and how to calculate it.

Calculating this figure is much easier if you are using accounting software such as QuickBooks.