Factoring Company for Trucking
Factoring Company for Trucking
Trucking professionals rely on factoring companies to get paid on time, boost operational efficiency, and support back-office needs.
Factoring companies help carriers of all shapes and sizes avoid delayed invoice payments. Through DAT’s partnership with OTR Solutions, an industry leader in freight factoring, truckers can solve cash flow problems and get rid of the hassles caused by invoice, billing, and collection work.
- Get paid fast with DAT’s factoring partner.
- Remove the unpredictability from your business cycle.
- Gain back-office support and valuable benefits.
Get paid fast with DAT’s factoring partner.
DAT wants truckers to get paid on time. That’s why we partnered with the best factoring company in the business, OTR Capital.
Factoring is an effective strategy that truckers use to minimize the strain of invoice processing and alleviate cash flow burdens. If you find yourself waiting on invoice payments long after they are due, factoring could be the solution for you.
With freight factoring, you can elect to sacrifice a small portion of the total load payment to ensure that you receive payment within a 24-hour period. OTR Solutions is a premier factoring company that optimizes cash flow management and gets you on the road faster.
Remove the unpredictability from your business cycle.
Transportation factoring allows truckers to streamline their business and take on new loads with confidence.
Carriers and owner-operators that use transportation factoring companies prioritize present-day cash flow needs. The ability to get paid predictably and on time is worth sacrificing the small fee for the factoring company’s invoicing services. Factoring closes the gap between the time truckers complete a load and actually get paid on that same load. Minimizing payment delays gets you back on the road much more quickly, which is why factoring appeals to truckers seeking to boost their load volume and grow.
Gain back-office support and valuable benefits.
Having around-the-clock account support for your back-office needs can springboard your trucking business.
The right truck factoring company will also assist truckers with back-office needs. A factoring company never acquires physical possession of a load. In return for a small percentage of the load fee, factoring companies instead handle all of the load’s invoice-related and administrative matters. Once the factoring company pays for a particular load, it becomes their responsibility entirely to collect payment from the customer.
"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
A factoring company for trucking offers freight factoring, sometimes called trucking invoice factoring, services to truckers. Factoring allows truckers to sell their freight invoices to a factoring company in return for rapid payment. The trucker sacrifices a small percentage and receives a slightly discounted value of the total load payment in order to receive payment from the factoring company within a 24-hour period.
This can be a really effective route for truckers who have immediate cash flow needs. Given that 60% of invoices are paid late, a time value exists for truckers who sometimes have to wait for up to a few months for a broker to finally pay off an invoice. Factoring helps truckers get paid quicker and stay on the road that much more.
The freight factoring process for truckers is simple. Once truckers deliver a load, they can submit the bill and rate confirmation to the partner factoring company. Trucking ends with the brokerage firm verifying a clean delivery. Upon confirmation, the factoring company will then deposit the payment into the trucker’s account. It’s that easy. These funds can be deposited immediately using a fuel card within less than an hour via wire transfer, or overnight through ACH.
Most factoring companies will charge truckers a factoring fee or discount rate ranging from 1% to 5% of the total freight invoice. Keep in mind that factoring fees will vary based on a trucker’s creditworthiness, sales volume, invoice value, and whether the company uses recourse or nonrecourse factoring.
Freight factoring offers a host of valuable benefits for truckers. Chief among them: factoring gets truckers paid quickly, allows truckers to grow their businesses, and improves truckers’ customer satisfaction. Truckers can effectively plan ahead using factoring because predictable and reliable invoice payments smooth the business cycle. Since operating cash flow and working capital can now consistently be accounted for, truckers can eliminate any cash flow gaps that occur when customers slowly pay their invoices.
Truckers can bypass traditional lenders and more ably grow their business through factoring – without incurring more debt, subsequent interest payments or payroll problems in the future. At the cost of the small factoring invoice percentage fee, the time-value of money means truckers can maximize their business’s present-day value. And some of a carrier’s customers and most valuable accounts seek longer payment periods, so factoring keeps the trucker’s business functioning without a hitch.
With the best factoring company, truckers can eradicate cash flow gaps, streamline operating efficiency, and purchase complimentary freight factoring services specifically geared towards truckers.
There are a few key criteria to look for when evaluating the best factoring companies to meet your needs. Carriers should consider the kinds of businesses that the factoring company works with and the structure of each company’s factoring process. Each factoring company will also offer different terms, fees, conditions, and other possible requirements.
DAT partners with OTR Solutions to ensure trucking professionals no longer have to wait weeks, if not months, to get paid. The factoring process is made easy with OTR. Truckers will receive a payment within 24 hours after submitting their invoice. OTR’s factoring programs are straightforward, fair, and reliable. Growth-oriented carriers appreciate how OTR doesn’t include any unnecessary hidden fees. Less time spent on administrative and back-office tasks frees carriers to focus on the road ahead.
OTR Solutions has emerged as the premier factoring company because of its unrivaled range of benefits, services, and features designed to help truckers grow their businesses. OTR is the top biller in the industry because it offers flat factoring rates, transparent pricing, and no long-term contracts or commitments.
OTR Solutions provides both recourse and non-recourse factoring programs and 24/7 credit checks. OTR not only imposes no credit restrictions, monthly minimums, or volume limits, but also refrains from any chargebacks on cleanly delivered loads. Their intuitive online client portal and mobile app further create a convenient and simplified factoring process. Truckers also benefit from having their own dedicated account manager who exclusively takes care of all back-office and cash flow needs.
Partner with the Best Factoring Company For Trucking Today!
Every load on DAT load boards that contain a blue checkmark is automatically eligible to be factored through OTR Solutions. Factoring continues to become more and more popular in the trucking industry as supply chain bottlenecks mean higher degrees of uncertainty. In a complicated business climate, OTR is here to get you paid on time, keep you on the road, and keep your business ticking over.