What is factoring in trucking?
What is factoring in trucking?
Factor your loads to quickly gain access to the cash you need to run your business.
Carriers and owner-operators often have to wait weeks or even months for payments. Not only is this frustrating, but it can also hurt your business! After all, if you don’t have any cash, you can’t cover your fuel, maintenance, and other day-to-day costs. Enter freight factoring from OTR Solutions.
- Get paid within just 24 hours
- Quickly access true non-recourse factoring
- Say goodbye to hidden fees
Get paid within just 24 hours
Access cash quickly with freight factoring services from OTR Solutions.
Transporting freight involves a lot of work. You’ll need to find, negotiate for, and deliver loads. On top of that, you also have to handle your cash flow. Unfortunately, slow payment times are common, leading to cash flow gaps.
That’s where factoring in trucking comes in. With factoring services, you’ll get your cash within a day and won’t be 100% reliant on timely customer payments or loans.
Quickly access true non-recourse factoring
Let OTR Solutions take on the risk of unreliable customers for you.
Recourse factoring is an excellent fit for many companies, but sometimes non-recourse factoring is the way to go. However, most companies that claim to offer non-recourse factoring actually don’t. In fact, many companies will only fulfill their promise if your customer files for bankruptcy!
Luckily, OTR Solutions is different. It offers the only true non-recourse factoring in the industry. That means when you factor with OTR, they’ll take on the risk should a customer refuse to pay — and you can keep any money you’ve already received.
Say goodbye to hidden fees
OTR Solutions provides trucking invoice factoring services without any pesky hidden fees.
Hidden fees can creep up on you when you least expect it and throw your entire budget into disarray.
The good news is that you won’t have to worry about hidden fees when you use OTR Solutions’ freight factoring services. Instead of slipping costs past you, OTR Solutions has transparent pricing so what you see is what you’ll pay.
"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
Being a carrier or owner-operator usually means waiting weeks or months for payments, but that’s not the case with freight invoice factoring. Instead of waiting for money to arrive and potentially taking on new debt to keep your business afloat in the meantime, you’ll have the cash you need much faster.
Your freight factoring company will pay you and then wait for your customer to pay them. In exchange, your factoring company will take a small percentage of your total invoice, but you’ll quickly get the money you need. With OTR Solutions, you can get an advance within 24 hours!
Getting cash quickly while another company handles the waiting sounds like a dream come true. In fact, it almost sounds too good to be true.
While factoring in trucking used to be filled with companies that charged massive fees, slipped in hidden fees every chance they had, or had deceptive practices, it’s pretty reliable these days — especially if you work with a trusted trucking invoice factoring company like OTR Solutions.
With OTR Solutions, you’ll not only have reliable cash flow and access to straightforward factoring programs without any monthly requirements or hidden fees, but you’ll also receive high-quality customer support.
Every freight invoice factoring provider charges slightly differently. However, most companies charge between 0.5% and 5% of an invoice’s total value. Exact rates will depend on how many invoices you factor, the invoice amount, whether you opt for recourse or non-recourse factoring, and your customers’ credit history.
Some trucking invoice factoring companies also have hidden fees on top of their base factoring percentage, but you won’t have to worry about that if you work with OTR Solutions. Our trusted partner has transparent pricing, so you won’t be caught off guard.
Factoring in trucking will cost you a little money, but it’s worth it. You’ll be able to get cash when you need it and pass off billing and collecting duties to your factoring company. With freight factoring, you’ll have the money to cover repairs, fuel, hotels, and other day-to-day expenses.
So, say goodbye to waiting 30 to 90 days for payments, taking out additional loans, and overdrafting your credit card! Instead, you can have cash in your pockets in just 24 hours.
When it comes to recourse and non-recourse factoring in trucking, there are a few differences to consider.
In recourse factoring, you’ll need to pay the factoring company back if your customer never pays or makes a late payment. However, the factoring company takes on the risk of non-paying customers in non-recourse factoring in exchange for slightly higher fees. This means that if a customer defaults, you’ll still be able to keep the cash advance. While many companies claim to offer non-recourse factoring, only OTR Solutions offers true non-recourse factoring.
OTR Solutions is one of the highest-rated factoring providers, and with good reason. Not only do they offer unrivaled client support and straightforward and value-driven factoring solutions with transparent pricing, but they also provide reliable and fast cash flow. With OTR Solutions, you won’t have to wait to get paid. Instead, you’ll receive your cash within 24 hours and can keep your business running smoothly — no additional debts required.
What’s more, you can see which loads can be factored with OTR Solutions right in the DAT load board! Just look for a blue checkmark next to a load.
Start freight factoring with DAT’s trusted partner, OTR Solutions
Ready for transparent pricing and same-day freight invoice factoring? Check out OTR Solutions’ freight factoring services.
When you work with OTR Solutions, you’ll receive payments quickly, and they’ll handle the billing and collecting. Register with OTR Solutions today to get paid promptly and gain peace of mind!