Five Critical Metrics Every Factoring Company Should Track Monthly

Portfolio Yield & Net Spread Margin

Your portfolio yield is the heartbeat of your factoring business. It measures the average rate you’re earning across all purchased receivables, along with your net spread.

Bad Debt Ratio & Reserve Adequacy

Monitoring bad debt and reserve adequacy monthly ensures proper risk management and protection against losses.

Client Concentration Ratios

Tracking client and debtor concentration helps prevent overexposure and improves portfolio stability.

Turnover & Average Days Outstanding (ADO)

ADO measures how long it takes to collect purchased receivables. Faster turnover reduces credit risk and improves liquidity.

Cash Flow Forecasting & Funding Capacity

Accurate forecasting supports funding, growth planning, and lender relationship management.

Boyum Barenscheer supports factoring companies nationwide with financial reporting, internal controls, tax planning, and performance analysis.  Contact us at info@myboyum.com to learn more about our services.