Discover the Best Freight Factoring Company: OTR Solutions

A man sitting in the driver's seat of a semi-truck.

Carriers need a factoring company that can boost cash flow, provide peace of mind, and set up their business for success. OTR Solutions provides the industry’s best non-recourse factoring services.

In the trucking industry, it’s unfortunately common to find carriers waiting for weeks or months to receive payment from a broker. The delay isn’t just frustrating, but it also disrupts your trucking business operations. Without adequate cash flow, carriers can struggle to cover fuel costs, meet payroll for drivers, or maintain their fleet. Freight factoring provides a solution for these challenges.

However, it’s crucial to choose the right freight factoring company. Carriers need best-in-class service to help their businesses thrive, and that’s precisely why OTR Solutions (formerly known as OTR Capital) is the trusted choice for trucking companies. With a wealth of industry experience, equitable rates, and a commitment to superior customer service, OTR Solutions is a partner you can trust for the long haul.

The basics of freight factoring

Freight factoring, also known as invoice factoring, transportation factoring, or simply factoring, exists to tackle cash flow hurdles that businesses often encounter. Instead of waiting for payment for weeks or months, you can opt to sell your invoice to a freight factor. They’ll swiftly advance the funds you’re owed, charging a small fee for their services. Carriers can then utilize this upfront capital to manage day-to-day expenses and fuel business growth, while the factoring company takes on the responsibility of collecting payments.

One of the standout perks is the lightning-fast funding typically offered by invoice factoring companies. This means you can promptly meet payroll for your drivers, cover operational costs, or even invest in new equipment. Quick payment enables you to keep those wheels turning and your business moving forward without worrying about settling your accounts.

In contrast to the process of securing a traditional bank loan, which relies on your credit score and financial history, freight factoring works differently. Factors primarily focus on your customers and their capacity to make timely payments. So, even if your record isn’t flawless and your credit score isn’t perfect, you can still qualify for factoring services, provided your factor approves the brokers and shippers you work with.

Factoring companies only make money when you do, meaning that their fee is deducted from the invoice amount when they front you the funds, and they recoup this small percentage when your customer eventually pays them back. It’s a win-win setup, as it requires zero out-of-pocket expenses from a carrier’s business and simply involves a small deduction from the top-line invoice amount of the loads you successfully haul.

What is non-recourse factoring?

Non-recourse factoring is a specialized area of invoice factoring where the accounts receivable factoring company assumes the risk of non-payment. Simply put, if your customer fails to honor their invoice, the factoring company for trucking will absorb the financial hit, sparing your business from any chargebacks that might pop up, which can happen when using recourse factoring.

Non-recourse factoring serves as a lifeline for small-scale and new carriers who can’t afford to take on the risk posed by uncertain broker payments. Choosing a factoring partner that offers non-recourse factoring ensures quick and easy access to capital when you need it. The data proves its benefit: carriers who utilize non-recourse freight factoring are over 30% more likely to sustain their operations compared to businesses that opt out.

However, there are a number of factoring companies out there that claim to offer non-recourse factoring, but in reality, they either surprise you with hidden fees or only assume the financial risk in specific circumstances, such as your customer declaring bankruptcy between the time you sell your invoice to your factor and the time your client is supposed to pay. Scenarios like that are extremely rare, meaning carriers are still left dealing with unpaid invoices.

The benefits of using OTR Solutions for factoring

OTR Solutions is known as one of the premier factoring companies for truckers in the industry, and they’re committed to providing non-recourse factoring services with transparency and integrity. This means you never need to worry about hidden clauses or exceptions. When OTR Solutions says they offer non-recourse factoring, they mean it.

What sets them apart is the straightforward assurance that you get to retain your advance, even if your customer fails to fulfill their payment obligation, no matter the reason. Whether your client faces financial turbulence, chronically delays payments, or simply refuses to settle their dues, OTR Solutions steps in, shoulders the responsibility for your invoice, and resolves the matter on your behalf. This makes OTR Solutions one of the select few accounts receivable factoring companies to offer true non-recourse factoring, which is why they’re consistently ranked among the best non-recourse factoring companies in the industry.

Since being established in 2011, OTR Solutions has been a major part of assisting carriers with optimizing their cash flows and fostering business growth. With a comprehensive range of factoring options encompassing both recourse and non-recourse options, OTR Solutions caters to every segment of the industry. They even help craft customized factoring programs designed to align seamlessly with your company’s particular needs and cash flow objectives. Whether you run a mid-sized operation or a large fleet, OTR Solutions is ready with factoring solutions designed to propel your business forward.

When it comes to rates and fee structures, OTR Solutions offers some of the most competitive factoring rates and provides a transparent fee framework. This transparency minimizes any unpleasant surprises, making them one of the most reliable players in the factoring industry. In addition, OTR Solutions recognizes the importance of flexibility to carriers and does not require any long-term contracts or minimum factoring requirements to work with them.

OTR Solutions also boasts a team of seasoned professionals committed to nurturing strong customer relationships and delivering impeccable service. They seamlessly handle all aspects of the factoring process, including payment verification, invoicing, claim assistance, and payment collections, effectively lightening your workload and allowing you to channel your energies into business growth.

Additionally, their team of experienced factoring experts is always on standby, ready to address your questions and provide guidance at any stage of the factoring process, so you’ll always be able to speak with a genuine 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 distinguishes itself as one of the very few freight factoring companies that provide true non-recourse factoring. When you sell your invoices to OTR Solutions, the entire risk of non-payment is completely transferred to them. This makes partnering with OTR Solutions a more secure option compared to many other recourse factoring services.

    • No chargebacks: OTR Solutions maintains a firm stance on not issuing chargebacks on cleanly delivered loads from pre-approved brokers. This helps eliminate the financial uncertainties that chargebacks can introduce.

  • Recourse factoring: OTR Solutions’ recourse factoring program helps carriers convert outstanding invoices into immediate cash flow. This strategic financial approach empowers you to cover day-to-day expenses, from fuel costs to workers’ wages, while you await payment from your clients.

    • A fleet factoring program: For carriers seeking unparalleled growth support, OTR Solutions’ Fleet Factoring program offers an ideal solution. Designed to be scalable and customizable, it caters to the needs of mid-sized carriers and large fleets. With OTR Solutions’ fleet factoring program, you can cast aside worries about credit restrictions or payment collection. Instead, you can rely on OTR Solutions to seamlessly handle invoicing, accounts receivable, and back-office services, ensuring your operations run smoothly.

What Sets OTR Solutions Apart:

  • Same-day funding: OTR Solutions recognizes the importance of maintaining a healthy cash flow for carriers. To this end, they offer same-day funding, and with BOLT Instant Funding, you can expect money in your account within seconds, not hours or days. No more waiting for overnight ACH transfers or wire deposits that eat into your time and budget — BOLT’s direct-to-debit transactions are virtually instant, enabling you to promptly cover expenses like repairs, fuel, and driver wages when you need it.

  • A dedicated account manager: When you partner with OTR Solutions, you get the benefit of having a dedicated account manager as your go-to resource for handling all matters related to cash flow and back-office needs, freeing you up to focus on other crucial aspects of your business.

  • An easy-to-use client portal and mobile app: OTR Solutions delivers unmatched convenience through its user-friendly client portal and mobile application.

  • No unnecessary restrictions: Unlike many factoring companies that impose a slew of restrictions, OTR Solutions takes a refreshingly different approach. They don’t require monthly minimums, burden you with credit restrictions, or set arbitrary volume limits. You won’t be forced to factor loads if it doesn’t align with your financial strategy.

  • An incredible fuel card program: In addition to their factoring services, OTR Solutions offers an exceptional fuel card program that could save you over $500 per month per truck. The OTR Fuel Card is widely accepted at over 8,000 locations nationwide and doesn’t saddle you with in-network transaction fees.

    • A free fuel finder: Enhance your trucking operations with real-time access to fuel pricing and exclusive discounts through the Fuel Finder feature on the OTR Mobile App. This invaluable tool equips you with the information you need to make cost-effective decisions on the road.

  • Integrated broker checks: OTR Solutions has seamlessly integrated broker checks with the DAT load board. This allows you to determine if a load is eligible for factoring before you even book it, saving you time and ensuring hassle-free transactions.

    • Integrated invoicing: OTR Solutions further streamlines operations with an integrated invoicing board that automates the entire invoicing workflow. This enhances accuracy and efficiency, enabling carriers to fully unlock the potential of their trucking operations.

Get paid fast and keep on trucking

Freight factoring is a competitive arena, but the trusted freight factoring partner OTR Solutions offers the most value for carriers. By quickly converting your outstanding invoices into immediate cash, OTR Solutions empowers you to maintain a robust cash flow, meet your daily financial obligations, and pave the way for business growth on your terms. Their commitment to transparency in factoring ensures you have full visibility and control over your funding.

Our experts trust OTR Solutions to get paid fast and ensure that carriers never miss a beat.

Simplifying carrier payments with OTR Solutions

Maintaining a healthy cash flow is always a challenge, especially when brokers don’t pay on time. Fortunately, OTR Solutions is here to simplify the process. With recourse and non-recourse factoring solutions at your disposal and lightning-fast processing, OTR Solutions is your partner for financial success.

Experience OTR Solutions for yourself today!

OTR Solutions

DAT's factoring partner