Quick Pay for Truckers
Quick Pay for Truckers
Quick pay for truckers may be a popular option, but it’s far from the best financing option. Enter: invoice factoring.
Getting paid when you need it is incredibly appealing, but not all options are created equal. While many truckers turn to quick pay, it’s simply that, a quick fix. Factoring your invoices offers the same, and often faster, funding on your freight invoices for virtually every broker, bringing consistency, reliability, and a slew of additional features and benefits to your operation. Discover why partnering with a specialized factoring company like OTR Solutions is a great alternative to quick pay trucking.
- Get the cash you need when you need it, universally.
- Reduce stress and simplify back office workflows.
- Take advantage of additional tools and resources that help your business thrive.
Get the cash you need when you need it, universally.
Eliminate your cash flow concerns with invoice factoring that gets you the cash you already earned in under 24 hours.
With factoring you can get the money you already earned when you want it, without waiting for slow-paying customers to pay up, or limiting yourself to brokers who offer quick pay. You simply sell your invoice to a factoring company, get paid the full value minus a small fee, and let the factoring company bill your customer and wait for payment.
As DAT’s chosen factoring partner, OTR Solutions offers quick pay factoring that helps you take control of your cash flow and expand your network to find better and higher paying freight. Simply submit your invoice online and get paid straight to your bank account within 24 hours. It’s that simple.
Reduce stress and simplify back office workflows.
The best factoring companies make getting the money you already earned easy, and following up on payments a think of the past.
Quick pay trucking may seem like a great way to get cash, but it can become complicated and limiting for your business in the long run. With terms and rates that can vary greatly from broker to broker, if they even offer a quick pay option, navigating quick pay for truckers is often a headache.
Luckily, there’s another option. Factoring with a reliable partner, like OTR Solutions, lets you get all the benefits of quick pay trucking – and many more – all without the headache. With no restrictive contracts, monthly minimum requirements, or hidden fees, OTR makes it easy to factor your invoices and get paid fast, every time. Simply use the intuitive client portal or mobile app to submit your invoice and let OTR do the rest. You can even track the status of your payments and fuel advances so you always know exactly when your cash will hit your account!
Take advantage of additional tools and resources that help your business thrive.
OTR Solutions’ dedicated back office support and account management services help keep your operation firing on all cylinders.
Anyone who works in trucking knows that time is money, and relationships are everything. The more time you have to spend tracking down slow-paying customers and navigating back-office tasks, the less time you’ll have to spend expanding your network, building relationships, and finding new freight.
The good news is that when you partner with a leading freight factoring company like OTR Solutions, you don’t just get your money fast, you also get back your time. That’s because OTR assumes all invoice-related back-office duties, leaving you free to focus on growing your business instead of on tracking down the money you already earned.
"OTR Solutions is a wonderful company to work with. They go above and beyond to meet your needs. Everyone I have worked with has always been really nice and professional. I would recommend OTR Solutions to everyone looking for a great factoring company."
- Nicole Ives
"OTR Solutions is one of the best things that has happened for our company Sal-Trans Express, Inc. Their Customer service is of the best quality. Provide detailed explanations to all questions asked and truly always look out for their customers. Their personalized services have allowed our company to scale quickly and allowed us to make the necessary decisions for our company."
- Eduardo Salazar
As the name implies, quick pay trucking is a way for carriers and owner-operators to get paid for their work more quickly. Shippers and brokers are famously slow when it comes to paying invoices. While this obviously isn’t true of every individual shipper or broker, without an expedited payment option you can be stuck waiting 30, 60, or even 90 days to get paid for the work you already completed.
To avoid that, quick pay truckers choose to pay the broker a percentage of the total load invoice in return for faster invoice payment that usually arrives between two and five days after a delivery is completed.
While it may sound like a great solution to the problem of slow-paying customers, quick pay trucking isn’t always the best solution – or even an option. Many brokers don’t offer a quick pay program in the first place, which means your business is limited when it comes to finding freight and making new relationships with customers. Those that do often set unfavorable terms and conditions for their quick pay program, with some major brokers charging as high as 5% of the invoice amount for funding in 48 hours.
Invoice factoring, also called freight factoring, freight bill factoring, or simply factoring, is a better solution. It offers all the advantages of quick pay trucking, plus many more. With factoring you can get paid within 24 hours of submitting an invoice and never have to worry about tracking down your slow-paying brokers or shippers when you factor on a true non-recourse factoring program like the one offered by OTR Solutions.
Freight factoring, also known as invoice factoring, allows carriers to receive speedy payments on their completed loads and acts as a centralized source for all brokers and loads hauled. Instead of waiting anywhere from 30 to 90 days to get paid for the work they already completed, carriers and owner-operators can sell their invoices to factoring companies who will pay them the full amount of the invoice (minus a small percentage) within 24 hours. That gives truckers access to the cash they need when they need it without having to take on debts or agree to unfavorable quick pay trucking terms.
While there are many different freight factoring companies to choose from, they aren’t all created equal. The best factoring companies, like OTR Solutions, provide simple factoring with no long-term contracts, minimums, or hidden fees. That means you can customize your factoring solution to meet your specific needs, factoring every invoice you want and none of the ones you don’t.
There are several key differences to note between quick pay trucking and invoice factoring.
One major difference is that quick pay is load by load, and broker by broker where freight invoice factoring is a universal solution for your entire operation and customer base. Since quick pay is a one off engagement it does not offer trucking operations the centralized back-office benefits, credit protection, or reliability that you get when you factor with a top company.
Another is that relying on quick pay can seriously limit your business opportunities. That’s because many brokers don’t offer quick pay in the first place, or charge drastically higher fees for the advance. If you choose to only operate with brokers who offer quick pay, you are severely restricting your business’s ability to operate in a profitable manner, and even if most of the brokers you operate with offer quick pay, you’ll find they usually pay less per mile than non-quick pay loads. Fewer potential brokers means fewer options for freight. That translates into more unpaid miles between loads, more days parked waiting for freight, and a reduced ability to find better paying freight or negotiate for higher rates.
And that’s not all. Because quick pay operates on a per-invoice model, brokers can vary their fees greatly – or even suddenly stop offering quick pay entirely – based on the current state of the market. In short, when linehaul rates or interest rates make advancing payment too costly, brokers have the freedom to simply stop offering it, potentially leaving quick pay truckers in a lurch.
Quality factoring companies, like OTR Solutions, offer standard and flat factoring rates with no hidden fees or minimums. Plus, thanks to DAT’s partnership with OTR, you can see exactly which loads you’ll be able to factor right from your load board before you begin negotiations. That way you can take control of your cash flow from the get-go.
While it’s true that factoring and quick pay are very similar when it comes to paying you for your invoices fast, when you consider the best ways to operate your business, factoring is a better alternative to quick pay trucking. That’s because, in addition to offering back-office benefits, credit protection, and greater reliability when compared to quick pay, factoring is also far more prevalent across the industry. The result is that it’s much easier to find freight you can factor than to find brokers who offer quick pay. If you do choose to work exclusively with brokers who offer quick pay, you’ll have fewer freight options to choose from, which will likely mean more deadheading, less time on the road, and fewer opportunities to negotiate higher rates, not to mention less money in your pocket!. Plus you’ll be at the whim of freight brokers who regularly change their rates – or even stop offering quick pay altogether – based on changing market conditions and interest rates.
When you factor with a quality partner, you’ll get the same benefits as quick pay when it comes to fast invoice payment, but without the cost of limiting your potential business opportunities.
At DAT, we’re always looking for ways to help trucking businesses thrive. As part of that mission, DAT has teamed up with the most trusted freight factoring company in the business, OTR Solutions, to ensure our members can get the cash they need when they need it without any long-term contracts, limitations, or hidden fees.
Thanks to this partnership, DAT users can see which loads are pre-approved for factoring with OTR right from their load board. That means you can plan ahead with the confidence of knowing you’ll be able to factor every load you want to – and none of the ones you don’t.
With more than 1 million new loads posted to the industry-leading DAT load board each business day, there are always new factorable loads to discover.
OTR Solutions has built its reputation on being transparent, honest, and fair to carriers. With no hidden fees, long-term contracts, or factoring minimums, OTR gives you the freedom to factor on your terms. Plus, as the only true non-recourse factoring solution on the market, OTR is the one place where you can factor with the confidence of knowing you won’t be on the hook for a slow-paying – or even non-paying – customer.
With OTR, you can get the full value of your invoice (minus a small fee) within 24 hours of submission through ACH, wire transfer, or OTR BOLT. Plus, by taking your invoice off your hands, OTR reduces your back-office tasks and leaves you free to pursue new business opportunities instead of chasing down payments from old ones.
And that’s not all. Thanks to OTR’s exclusive partnership with DAT, you can see exactly which loads you’ll be able to factor right from the load board you’re already using to find the best freight opportunities.
Start factoring with OTR today!
While quick pay may be popular with truckers, there’s no doubt that OTR’s factoring solutions beat even the best quick pay brokers. With same-day payments, no hidden fees, and extra back-office support, OTR Solutions is the best way to get your invoices paid fast. Quit quick pay and start factoring with OTR Solutions!