What is Factoring?
Factoring is a financial tool that allows you to have your invoices paid in 24 hours or less. Rather than send your invoices to your brokers and shippers who may take 30-90 days to pay, we buy your invoices from you for a nominal fee (typically just a few cents per dollar). We then forward those invoices to your customer and we do the waiting, so you don’t have to! The strong cash flow will allow you to meet your financial demands such as weekly payroll, insurance, fuel, tags, permits and driver advances. Best of all, it allows you to accept higher-paying loads from brokers and shippers whom you might not normally do business with because their payment terms are too high. Factoring is also sometimes called “accounts receivable financing.”
Improved cash flow is the number one benefit of factoring, enabling you to meet your financial obligations on time and to grow you business. But this is not the only benefit. With a factoring company like OTR, you add a business partner who provides you better record keeping and improved credit information on brokers or shippers. We do the collection work for you, leaving you more time to focus on your core trucking business and put your money to use fast!
How we can help be the bridge to your success!
- We offer same-day funding on approved invoices/PODS
- We have both recourse and non-recourse options
- We do not require a long-term contract
- 24/7 online credit checking on new and existing customers
- Personalized, responsive service with a primary account manager
- Invoicing services, reducing your paperwork requirements
- Collection management services
- Flexible factoring – we do NOT require all of your accounts to be factored with us
You CHOOSE which accounts to place with us
- Funding completed by direct deposit or wire transfer (same day or next morning payment options)