Explore OTR Solutions: The Best Freight Factoring Company
The right factoring company can boost your cash flow, provide peace of mind, and help your carrier business thrive. That’s why you need OTR Solutions.
In the trucking industry, it’s not uncommon for carriers to wait months for payment from a broker. Not only is this frustrating, but it can also bring business to a halt. After all, you can’t buy gas, pay your drivers, or pay for your vehicles if you don’t have cash. That’s where freight factoring comes in.
However, you can’t use just any freight factoring company. You deserve the best — and that means working with OTR Solutions (previously known as OTR Capital), a trusted factoring company for trucking. With years of experience, fair rates, and top-notch customer service, OTR Solutions can help your business thrive.
The basics of freight factoring
Freight factoring, also called invoice factoring, transportation factoring, or simply factoring, was created to help businesses overcome cash flow challenges. Instead of waiting weeks or even months to receive payment for a completed job, you can sell your invoice to a freight factor. They’ll pay you what you’re owed up front, minus a small fee they take for themselves. You can then use this money to cover your daily expenses and grow your business while your factoring company collects payments on your behalf.
Invoice factoring companies often provide same-day funding, meaning you can start paying your drivers, covering operating expenses, or investing in new equipment immediately. As a result, you can continue to deliver loads and grow your business as you wait for your customers to pay.
While securing a traditional bank loan to cover operational costs can be incredibly difficult if you don’t have a perfect credit score or a long financial history, freight factoring works differently. Instead of examining your credit and history, factors will concentrate on your customers and their ability to pay. So, if you don’t have a flawless record or a perfect score, you can still qualify for factoring services, as long as your factor approves of your customers.
Factoring companies only make money when you make money because their fee is deducted from the invoice amount when they pay you. The small percentage they take is recouped when your customer pays them back a month or more later. This is the perfect setup as the service requires no money out of pocket and is simply a small percentage off the top line invoice amount of the loads you complete.
What is non-recourse factoring?
Non-recourse factoring is a type of invoice factoring where the accounts receivable factoring company assumes the risk of non-payment. In other words, if your customer never pays their invoice, your factoring company for trucking will absorb the loss, not you. Non-recourse factoring offers additional peace of mind and protection, as you won’t be issued a chargeback like you might with recourse factoring.
Non-recourse factoring was designed to be a lifeline for small and new carriers who can’t afford the credit risk posed by uncertain broker payments. Non-recourse factoring not only ensures swift access to funds but also significantly tips the scales in favor of its value. Carriers enrolled in non-recourse freight factoring are over 30% more likely to sustain their operations compared to those who opt out.
Unfortunately, many say they offer non-recourse factoring and charge extra for it but will only pay out under very specific circumstances. For example, your client would need to declare bankruptcy between the time you sell your invoice to your factor and the time your client is supposed to pay. This rarely happens, meaning carriers with non-recourse factoring are often held liable for unpaid invoices. Instead of being an option that provides security to carriers, non-recourse factoring becomes a clever marketing tactic that enables companies to charge more for the same service.
The benefits of using OTR Solutions for factoring
OTR Solutions delivers on its promise of non-recourse factoring with no hidden clauses or exceptions, making them one of the best factoring companies for truckers. When OTR Solutions says they offer non-recourse factoring, they mean it.
You’ll be able to keep your advance, even if your customer never pays your client, without jumping through hoops. Whether your customer went out of business, is late, or doesn’t want to pay, OTR Solutions will take full responsibility for your invoice, making them one of the only accounts receivable factoring companies to offer true non-recourse factoring. There’s a reason why OTR Solutions is one of the best non-recourse factoring companies!
Since 2011, OTR Solutions has been helping carriers improve their cash flows and grow their businesses. Offering both recourse and non-recourse factoring, OTR Solutions has a factoring program for everyone. They even have customized factoring programs to meet your unique needs and cash flow goals. So, whether you’re a mid-sized carrier or run a large fleet, OTR Solutions can provide factoring solutions that will help your business thrive.
OTR Solutions offers competitive factoring rates and transparent fee structures to help minimize any last-minute surprises, making them one of the most trustworthy factors in the industry. OTR Solutions also knows that flexibility is important to carriers, so you won’t have to sign any long-term contracts or meet any minimum factoring requirements.
Moreover, their team is staffed with experienced members dedicated to building strong relationships with customers and providing excellent service. OTR Solutions will handle every aspect of the factoring process. They’ll take payment verification, invoicing, claim assistance, and payment collections off your plate so you can focus on growing your business. On top of that, the OTR Solutions team is always ready to answer any questions or provide guidance on any other aspect of the factoring process — and they’ll talk with you on the phone so you can speak with a real representative.
Truck factoring services offered by OTR Solutions
OTR Solutions stands apart from other truck factoring services. When you work with OTR Solutions, you get services that go above and beyond.
Factoring Programs:
- Non-recourse factoring: OTR Solutions is one of the only freight factoring companies to offer true non-recourse factoring. While others make false promises of non-recourse factoring, OTR Solutions follows through. So, when you sell your invoices to them, you completely transfer the risk of non-payment to OTR Solutions, making it a more secure option than recourse factoring.
- No chargebacks: Unlike traditional setups where chargebacks might be commonplace, OTR Solutions takes a more firm stance and won’t issue any chargebacks on cleanly delivered loads from pre-approved brokers. Not only does this eliminate the potential financial uncertainties chargebacks can introduce, but it also simplifies your life.
- Recourse factoring: OTR Solutions’ recourse factoring program can help you convert any outstanding invoices into immediate cash flow so you can afford your day-to-day expenses. Selling your invoices is a strategic financial approach that can give you funds to cover everything from fuel to workers’ wages as you wait for clients to pay.
- A fleet factoring program: Experience unrivaled growth support with OTR factoring for fleets. Scalable and customizable, OTR Solutions Fleet Factoring is ideal for mid-sized carriers and large fleets. When you use OTR Solutions’ fleet factoring program, you won’t have to worry about credit restrictions or payment collection. Instead, you can count on OTR Solutions to deliver streamlined invoicing, accounts receivable, and back-office services.
What Sets OTR Solutions Apart:
- Same-day funding: OTR Solutions understands that carriers can’t maintain smooth operations if they don’t have a healthy cash flow. That’s why they offer same-day funding. With BOLT Instant Funding, receiving money in seconds will become the norm, not the exception. Instead of waiting a day for an overnight ACH transfer or an hour for a wire deposit, BOLT’s direct to debit transactions are near-instant, so you’ll never have to wait for your money or pay a bank wire fee. Instead, you can start covering your repairs, fuel, and driver wages that very minute.
- A dedicated account manager: If you work with OTR Solutions, you’ll also receive a dedicated account manager. They’ll be ready to handle all your cash flow and back office needs, meaning you can focus on other important tasks.
- An easy-to-use client portal and mobile app: OTR Solutions offers unparalleled convenience with its client portal and mobile application.
- No unnecessary restrictions: All too often, factoring companies impose a series of restrictions. They require monthly minimums, apply credit restrictions, or declare volume limits, but OTR Solutions is different. You won’t have to worry about obtaining perfect credit or meeting monthly minimums, and you won’t be forced to factor loads when it doesn’t make financial sense.
- An incredible fuel card program: In addition to its factoring options, OTR Solutions offers a fuel card that could save you over $500 per month per truck. The OTR Fuel Card is accepted at more than 8,000 locations across the country and has no in-network transaction fees.
- A free fuel finder: Empower your trucking operations with the ability to access real-time fuel pricing and exclusive fuel discounts at a network of participating locations, all conveniently available through the intuitive Fuel Finder feature on the OTR Mobile App.
- Integrated broker checks: OTR Solutions has integrated broker checks with the DAT load board, meaning you’ll be able to see if a load is eligible for factoring before you even book it.
- Integrated invoicing: OTR Solutions also has an integrated invoicing board that automates the invoicing workflow, ensuring accuracy and efficiency. The seamless approach to management allows carriers to harness the true potential of their trucking operations.
Get paid fast to keep your cash and your trucks rolling
There is a lot of competition for the best freight factoring company, but DAT’s freight factoring partner, OTR Solutions, is the clear winner. By converting outstanding invoices into immediate cash, OTR Solutions ensures you can maintain a healthy cash flow, afford your daily expenses, and ultimately grow your business on your own terms. Plus, their transparent approach to factoring means you’ll have better visibility and control over your funding.
Choose what the experts at DAT trust—choose OTR Solutions to get paid fast and keep your trucks on the road.
Let OTR Solutions simplify your life!
Maintaining a healthy cash flow is difficult — especially if brokers don’t pay on time. Luckily, OTR Solutions is here to help, offering recourse and non-recourse factoring solutions and same-day processing.
Experience OTR Solutions for yourself today!
