Non-Recourse Factoring
Non-Recourse Factoring
Submit invoices quickly and get paid promptly while DAT partner OTR Solutions checks credit and secures funds from your customers.
As a carrier or owner-operator, you take on plenty of risks. You negotiate loads, haul heavy freight and ensure goods arrive at their final destination in great shape on time. Non-recourse factoring can help you avoid headaches, provide greater financial security compared to recourse factoring and fund your growing business.
- Upload invoices and manage payments with the OTR Solutions app.
- Hand risk over to a trusted non-recourse factoring company.
- Get paid quickly for loads you’ve successfully delivered.
Upload invoices and manage payments with the OTR Solutions app.
Partner with a trusted non-recourse factoring company and unlock the power of technology to grow your bottom line.
Out of the best non-recourse factoring companies, OTR Solutions stands alone. That’s because of its mobile app, which allows you to grab pictures of your load paperwork and easily convert into professional invoices. You can then crop and filter the image if needed and upload it to OTR Solutions. Spot something that needs to be fixed after submitting an invoice? No problem. This non-recourse factoring app lets you add details, confirm rates or attach missing paperwork. Contact the operations team anytime for payment updates.
Hand risk over to a trusted non-recourse factoring company.
Get a non-recourse factoring business to track down all your customer payments so you don’t have to worry about it.
If you’re deciding between recourse and non-recourse factoring, it’s important to understand risk. In most cases, both types of services put nonpayment risk squarely on carriers. Not so with DAT partner OTR Solutions. They are No. 1 out of the best non-recourse factoring companies. After paying a small fee, they assume all the risk. Assign risk to a non-recourse factoring company you can trust.
Get paid quickly for loads you’ve successfully delivered.
Choose non-recourse factoring and enjoy the confidence that comes from knowing funds in the bank are yours to keep.
Many carriers, including owner-operators, pursue recourse and non-recourse factoring because it closes that critical final mile. As much as you love trucking, you don’t work for free. The best non-recourse factoring companies pay you for loads and handle follow-up and paperwork to close out business with customers. Recourse factoring sometimes means funds in your account must leave your wallet if a customer hasn’t paid. Non-recourse factoring from OTR Solutions takes that possibility off the map.
"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
You can think of recourse factoring, and a non-recourse factoring company specifically, as something that takes the hassle off your plate. The phrase “non-recourse factoring” refers to the fact that in exchange for a fee that’s slightly higher than recourse factoring, your factoring provider assumes all customer risk. If they don’t pay, your bottom line as a carrier doesn’t feel the impact. Instead, the non-recourse factoring business assumes that risk. To avoid this type of scenario, recourse and non-recourse factoring companies study your customers’ risk profile. This helps ensure you get paid in full and on time.
The biggest difference between recourse and non-recourse factoring is that recourse factoring leaves the risk on you as a carrier if your factor cannot collect payment from the customer after a certain period of time. Suppose a customer has not paid your factor 90 days after you factored the invoice and received payment. Many times, this means you’ll have to pay back the recourse factoring business. On the other hand, non-recourse factoring puts the risk on a partner such as OTR Solutions, the best of the best non-recourse factoring companies. They proactively manage risk. The result? Peace of mind.
The top non-recourse factoring company is OTR Solutions, a DAT partner. That’s because, unlike virtually all other factoring companies, they stand by their promise to assume all risk if a customer doesn’t pay. Unfortunately, most other factors will only cover your risk if a customer goes bankrupt. The best non-recourse factoring companies recognize carriers already assume big risks as small-business owners. A superior non-recourse factoring company will equip you with tools to easily upload invoices, pay quickly and track down the documentation needed to close out a customer job. They are also on call to answer your owner-operator questions.
Yes, credit checks are an important part of factoring. However, recourse factoring companies tend to review fewer credit details in less depth since you have agreed to take on some of the risk if payment is not collected. On the other hand, the best non-recourse factoring companies spend more time digging into your customers’ credit to ensure they will pay. Since non-recourse factoring has become so prevalent in the trucking industry the majority of brokers have acceptable credit to be factored on a non-recourse program. They will make sure all signals point to a customer that can pay on time. They will avoid customers that appear to be at financial risk or, in the worst-case scenario, could face bankruptcy.
Unfortunately, some businesses go bankrupt. You might have delivered many loads for them. You might have done your due diligence to ensure you’d get paid, and for whatever reason, the customer entered bankruptcy anyway. A standard recourse factoring company will sometimes not charge you if this happens. A non recourse factoring partner provides greater protection in the event of a bankruptcy you couldn’t possibly predict. They scour a customer’s creditworthiness closely to protect you from building relationships and doing business with poorly operated companies. This puts bankruptcy risk on the non-recourse factoring business, not on you.
The best recourse and non-recourse factoring companies can pay quickly. In many cases, you can get paid on the same day you submit an invoice. In other cases, you might receive payment the next day. The top non-recourse factoring company, OTR Solutions, provides a mobile app that tracks invoices and payments. You don’t have to keep notes in a binder. You can have confidence that the invoices you’ve submitted are being processed and will be paid quickly. Common ways to get funds to you include ACH, BOLT Instant Funding through a direct to debit transfer, or a wire transfer.
Get paid and avoid risk with non-recourse factoring today!
Every day brings new adventures for carriers. Don’t add chasing down customer payments and paperwork to your already busy to-do list. Trust DAT partner OTR Solutions to handle those details while giving you peace of mind that you’ll get paid quickly. Sign up for OTR Solutions to get started today!