True Non-Recourse Freight Factoring: Minimize Your Risk & Earn More

OTR Solutions is dedicated to delivering new and small carriers a factoring solution that offers them the highest chance of succeeding in any freight market. With True Non-Recourse Factoring, carriers can be confident in the customers they work with, and even more in in the cashflow we provide. True Non-Recourse Factoring is rarely found in today’s factoring space, since all liability for getting paid remains with the factor. For OTR Solutions, we believe assuming this risk is in the best interest of our clients and are excited to continue promoting carrier success for decades to come.

What is Non-Recourse Factoring?

 

Non-recourse factoring is a type of factoring that transfers the risk associated with your invoices to the factoring company. In other words, the factoring company assumes the risk of non-payment by your customers, providing you with the peace of mind that comes with knowing you will receive payment for your freight invoices. 

 

This financing solution allows you to access funds by selling your outstanding freight invoices to a factoring company like OTR Solutions.

 

How Does Non-Recourse Factoring Work?

 

Working with OTR Solutions is simple and straightforward. 

 

When you have a shipment, you generate an invoice for the freight services provided. Instead of waiting for 30, 60, or even 90 days to receive payment, you can sell your outstanding invoice to OTR Solutions in exchange for a small fee. Submit your invoice(s)before 12:00 PM local time, and your payment will be scheduled same day. With our BOLT Instant Funding option, access your funding instantly. Overall, non-recourse factoring allows you to get paid faster and maintain a healthy cash flow for your business. 

 

After we purchase your invoice, we become responsible for collecting payment from your customers. We follow up with your customers to ensure timely payment, and handle all collections activities on your behalf. This means you don’t have to worry about spending valuable time and resources chasing payments or dealing with the stress of unpaid invoices. With true non-recourse factoring, we assume the risk of non-payment –  giving you peace of mind.

 

Our fees are transparent and competitive and are based on factors like the volume and frequency of your invoices, and your creditworthiness.

 

Why Choose OTR Solutions for Non-Recourse Factoring?

 

At OTR Solutions, we offer non-recourse factoring solutions that cater to the unique needs of your trucking business. 

 

Our team has years of experience in the transportation industry and understands the challenges you face. We work with carriers, freight brokers, and shippers, providing customized factoring solutions that meet your specific requirements.

 

Exceptional Customer Service

We are committed to delivering the highest level of customer service to our clients. We recognize that trucking businesses operate in a fast-paced and ever-changing environment, and we are here to support you every step of the way. 

 

Our goal is to help you achieve success and grow your business by providing customized factoring solutions that meet your unique needs. 

 

We provide exceptional customer service by offering personalized solutions and take the time to understand your specific needs and tailor our factoring solutions accordingly. Most importantly, we work closely with you to determine the best approach to address your challenges and help you achieve your goals.

 

Expert Advice and Support

Our team of experienced professionals is available to answer any questions you may have and provide you with expert advice. We pride ourselves on our communication skills and believe that keeping our clients informed and up-to-date is essential for a successful partnership. 

 

We are always available to provide guidance and support, and our clients know that they can rely on us to be there when they need us.

 

Additional Services

We understand that factoring is only one part of the overall financial picture for your trucking business. That’s why we offer additional services and products, such as fuel cards, fuel advances, equipment financing, and other financial solutions to help you grow your business. 

 

We have partnerships with a range of industry-leading companies and can help you access the resources you need to invest in your business.

 

Frequently Asked Questions

 

What is non-recourse freight factoring?

Non-recourse factoring is a program in which a broker or carrier sells an invoice to a factoring company in exchange for a slightly discounted rate. Instead of waiting up to 30,60, or even 90 days for payment, brokers and carriers who factor are paid same-day after their submitted invoice is approved.  Additionally, with non-recourse factoring, the factoring company assumes the risk of nonpayment, not the carrier or broker, giving you peace of mind. 

 

What are the benefits of non-recourse freight factoring?

The largest benefit of non-recourse freight factoring is that you are not held responsible for non-paying customers. OTR Solutions assumes the risk on your behalf and doesn’t hold you reliable. Another key benefit is that you can get paid much faster than traditional invoicing – with OTR Solutions, it’s same-day..

 

Is non-recourse factoring better than recourse?

Subjectively, yes. If you want the most security and fastest payments, non-recourse factoring is the better of the two. If you want to earn slightly more and aren’t concerned with being held responsible for non-paying clients, then recourse might be for you. Typically, recourse factoring is for larger fleets as opposed to smaller owner-operators. If you are considering a recourse factoring program from another provider, be sure to read the terms and conditions as many might have strict stipulations.

 

Should I use quick pay or non-recourse factoring?

Quick pay should not be an option to consider over both recourse and non-recourse factoring programs. Quick pay is designed to do more harm than good for carriers.

 

How does OTR’s non-recourse program differ from other factoring companies?

OTR Solutions prides itself on being extremely competitive against the industry by offering brokers and carriers industry-leading tools and solutions that expand beyond non-recourse factoring. In addition to our offerings, our non-recourse factoring has the best rates around.

 

Who qualifies for non-recourse freight factoring?

Anyone with a genuine US DOT number and general operating authority.

 

How quickly can I get funded through a non-recourse freight factoring program?

With BOLT Instant Funding, you can get funded instantly from anywhere in the world. With your smartphone, you can also take advantage of our mobile app which also allows you to quickly factor invoices from anywhere.

 

What happens if my client doesn’t pay the invoice?

If your client doesn’t pay an invoice, you still get paid, and we try to collect on the invoice. With non-recourse factoring, in rare cases where we cannot collect a payment from your client, we assume the responsibility for nonpayment, not you. 

 

What types of freight invoices are eligible for non-recourse factoring?

If it has wheels, and delivers from point a to point b, we’ll factor your invoices. 

 

How do I apply for a non-recourse freight factoring program?

To apply for our non-recourse freight factoring program, you have a few options to choose from. The first would be to fill out this form. The second option is to call our office and speak to a representative for assistance. 

How long does the application process take?

If you’re applying during our standard business hours, we’ll typically have a response within one business day.