If It Happened To Convoy, Which Other Brokers Are Next? - OTR Solutions

If It Happened To Convoy, Which Other Brokers Are Next?

The Situation. 

Convoy Inc. suddenly, and without warning, shut its doors on Wednesday, 10/18. Convoy is yet another casualty of the freight market, joining the list behind Surge Transportation and Yellow.  The market, as we all know and have been enduring for longer than experts originally predicted, is in a very challenging spot for the vast majority of those operating largely in the spot market.  Our team of market and credit analysts predict that these recent exits are only the beginning, and are pointing to specific services and programs, like true non-recourse factoring, to keep carrier’s operating and in the green as we all navigate this market.   

Your Accounts Receivable vs. The Market – What does this mean for your invoices?  

If you have recent deliveries and are expecting payment when a broker goes out of business… you might just be out of luck. Brokers out of business translates to, in the best of cases, a long and difficult journey to realizing your cashflow, and in the worst, a cancellation of a broker’s outstanding debt resulting in a loss of all outstanding receivables for your business.  With today’s tough economy, inflation, and high fuel costs, one payment can be the difference between surviving and falling as an Owner Operator Company. Fleets may survive, having an operation large enough to support the resources required to fight for what’s owed, but for most of the market, there are little to no options to turn to.  

Insert: True Non-Recourse Factoring  

The answer? True Non-Recourse Factoring. We’ve gone in depth on what True Non-Recourse factoring is in previous postings, comparing directly to the common recourse offering in a previous posting, but here are the highlights. True Non-Recourse factoring is easily defined by a complete shift in liability to collect from the seller (you, the carrier) to the purchaser (the factoring company). In other words, only TRUE Non-Recourse factoring shifts all risk of loss from a broker bankruptcy from your business to the factoring company. (Key word here, True, as most generic non-recourse programs find ways to still hold the seller of an invoice liable).  

It is vital that this incredibly important piece of a company’s factoring offer is clearly and transparently outlined in the offer, not to be distracted by flashy rates that do not relate to this core offering.  

In fact, True Non-Recourse factoring is the only solution available to carriers and owner operators of any size that fully and completely protects your business from a loss in free cashflow when a broker or customer files for bankruptcy. It’s a critical piece of our industry and is taken advantage of by tens of thousands of carriers every day. OTR Solutions was founded over 10 years ago on the basis that carriers deserve a company, better said, a partner who offers them the services and protections True Non-Recourse provides, in their corner. This carrier-first mentality has allowed OTR Solutions to shoot directly to the upper tier of factoring providers, followed by none and surpassed by none in the short time it took. In fact, market studies have shown that carriers who factor with OTR Solutions are 3x more likely to be in business after 5 years when compared to those who don’t, and True Non-Recourse factoring is to thank for that.   


What To Do If You Already Have a Factoring Contract But Want To Change To True Non-Recourse Factoring? 

Give OTR Solutions a call! While it’s not a guarantee, sometimes your current contract can get bought out to allow you to switch factoring programs and companies. Our team will do our best to help you get the support and services you need to be able to always get paid, no matter what challenges exist in the market. 


Give us a call at 678-507-3370 to learn more about our True Non-Recourse offering and what options you have available to protect the money you earned! And, empower your operations further with OTR Clutch: the first-ever banking solution made just for truckers. Drive right into stabillity.

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