The Positive Impact of Freight Factoring for Trucking Company Finances

The Positive Impact of Freight Factoring on Trucking Company Finances

Trucking companies come in all shapes, colors and sizes, but at the end of the day, the goal remains the same: positive cash flow. Trucking companies often turn to freight factoring as a common solution to improve their cash flow. But just how can factoring companies provide such a positive impact to a freight company’s cash flow? In this article, we’ll explore just that. Let’s dive in and discuss the freight factoring benefits and a few other finance areas in the world of trucking.


The Average Trucker Income

The average trucker income in the United States in 2022 was $150,000, with some owner/operators netting as much as $250,000. However, the average income does not necessarily reflect every trucker. No matter your earnings, freight factoring is for you. Freight factoring has proven to rapidly scale operations and increase income for all truckers, despite their cash flow


Freight Factoring Benefits

When we talk about freight factoring, it’s important to understand the two types:

  1. Recourse 
  2. Non-Recourse


Recourse factoring is where the carrier holds the majority of risk for unpaid invoices. Non-recourse factoring is where the carrier typically does not hold any risk, and instead the factoring company holds the risk.


With freight factoring, there are several unique benefits that make it ideal for carriers of all sizes. These benefits depend on the factoring company, but typically include:

  • Fuel advances
  • Back-office support
  • Operations support
  • Quick funding


However, as we said, it strongly depends on the factoring company you choose. 


When you factor with us (OTR Solutions) you get many more benefits outside of what’s been listed. Let’s cover those next.


Benefits to Freight Factoring with OTR Solutions

OTR Solutions has many unique services and tools to offer owner/operators, ranging from safety score monitoring to instant funding solutions. Our dedication has always been to provide truckers with the tools they need to truly improve their cash flow.


Instant Funding Solutions (BOLT)

Thanks to our proprietary payment solution (BOLT), we’re able to provide lightning fast payments on all of your invoices while also ensuring we have the lowest fees around ($1 ACH fee, vs. others which have a percentage of the total).


Bolt →


Mobile Factoring Application

Android or iOS users can benefit from OTR Solutions’ mobile factoring application that allows you the quick and convenient method of factoring an invoice from their smartphone or tablet. This solution ensures you have your funds as fast as you need them, while also letting you get back to what you love the most.


Mobile Factoring Application →


Fuel Advances & Fuel Cards

Whether you’re a sole owner/operator or manage an entire fleet, OTR Solutions’ is bound to have a fuel-related service for you. Our fuel advance solution is perfect for those that need fuel and don’t want to worry about the cost right now. Our fuel card is a prepaid fuel card that offers deep discounts on fuel at several thousand truckstops nationwide.


Fuel Advance →


Operations & Back Office to Support You

We have a prime arsenal of freight experts ready to guide and support you throughout your cash flow adventure. 


Our Teams →


Safety Score Monitoring

When you’re managing a fleet, it’s important to ensure your truckers are staying safe and compliant with local laws and regulations. Our BASIC safety score monitoring solution is perfect to view your BASIC scorecard, and receive invaluable feedback on your safety related performance.


Safety Score Monitoring →


True Non-Recourse Freight Factoring

Unlock your cash flow potential with OTR Solutions’ innovative approach to non-recourse freight factoring. Minimize your risk and  get funded faster. Factor with OTR Solutions today!


Apply Now →


Benefits of Non-Recourse Freight Factoring

We’ve briefly discussed one benefit of non-recourse freight factoring,risk mitigation. Let’s get into the other benefits of non-recourse freight factoring:


Predictable Cash Flow

Unlike recourse factoring, non-recourse factoring provides carriers with a more predictable cash flow solution by simply reducing the risks involved with non-payers. 

With non-recourse factoring, you get the benefit of predictable cash flow because you’re paid even if a client doesn’t pay their invoice. This contrasts with recourse factoring, where if too many invoices go unpaid, the factoring company might stop servicing your invoices and leave you with the unpaid balances.


Increased Financing Capacity

Non-recourse factoring companies, such as OTR Solutions, typically will have a higher financing capacity since they are taking the risk. Recourse factoring often has minimums and maximums needed to reach a contract. Non-recourse factoring has no minimums or maximums.


Increased Credit Rating

With non-recourse factoring, you are not borrowing money, you’re simply getting your invoice purchased from you. Recourse factoring, however, is a credit-based solution where the factoring company loans you the money, and will collect on it in the event of a non-payer.


Earn More Trucking with Freight Factoring

Ready to get started and scale your business’s cash flow? Apply for freight factoring with OTR Solutions and get started! 


Apply Now →

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