Locating dependable freight invoice factoring companies can be daunting, and the hunt for a non-recourse factoring company makes it even more difficult. That’s where OTR Solutions steps in—your top choice among non-recourse factoring companies.
As a carrier, you’re no stranger to the need for a steady cash flow. It’s the lifeblood of your business—without it, you can’t keep your drivers and staff paid, handle fuel costs, fulfill financial commitments, or generally maintain operations.
Despite this, brokers and shippers don’t always cut those checks in a hurry. You could find yourself in a holding pattern, waiting for the payout from a completed job for months at a time. In the meantime, you might rely on credit more than you’d like or take on debt just to stay afloat while you wait for what’s rightfully yours. That’s where freight factoring changes the game for carriers.
Why work with a freight factoring company?
Whether you refer to it as truck factoring, freight factoring, invoice factoring, or transportation factoring, the advantages are crystal clear. It enables you to turn those outstanding invoices into tangible cash quickly, instead of waiting weeks or even months for payments. Through freight factoring, you can expect to receive that money in your hands within a day or two, with just a modest fee retained by your factoring company.
Working with a freight factoring company isn’t just a means of getting payment fast. It’s a strategic move that empowers you to overcome cash flow challenges, maintain operational continuity, address maintenance expenditures, and, most importantly, shift your focus from waiting on brokers to expanding your business.
This is a need that premier factoring companies for trucking understand very well. Many companies offer competitive factoring rates and expedited funding – with some providing additional perks such as fuel card programs, user-friendly applications, and back-office support for invoice management.
Through a partnership with a reputable factoring company and by leveraging accounts receivable financing, you can gain immediate access to the necessary funds, streamline your operations, and redirect your efforts toward business growth. You’ll also eliminate the need for loans or debt, so you can focus on positioning your carrier business for long-term success.
What is recourse vs. non-recourse factoring?
Let’s break down the difference between recourse and non-recourse factoring.
Recourse factoring is the more common and straightforward option. In this arrangement, your factoring company purchases your invoice, providing you with the upfront cash you need while they handle the collection of payment from your customer. However, there’s a catch: if your customer fails to make the payment, your factoring company may issue a chargeback, requiring you to repay the advance.
On the flip side, non-recourse factoring companies assume the risk of unpaid invoices for a small fee. With non-recourse factoring, if your customer defaults or makes a late payment, you can still retain the money advanced by your factoring company.
That said, it’s important to note that most accounts receivable factoring companies claiming to provide non-recourse factoring do so under specific conditions. For instance, your customer typically must file for bankruptcy during the period between when you submit your invoice and the time they are supposed to make the payment. Given that factoring companies conduct thorough checks on brokers and customers, this scenario is quite rare. This means that some companies can be labeled as non-recourse factoring, but are essentially offering recourse factoring with a higher fee attached.
Top 5 freight factoring companies for truckers
There are many truck factoring services, so determining the best factoring companies for truckers can be challenging. But don’t worry! We’ve rounded up our top five freight factoring companies and will give you the details so you can make the best possible decision.
1. OTR Solutions
OTR Solutions, formerly known as OTR Capital, stands out from the competition because of its instant funding options and true non-recourse factoring services. In fact, OTR Solutions’ customer satisfaction rate is higher than any other factoring company for trucking.
Specializing in factoring services for carriers, OTR Solutions offers competitive rates, exceptional customer service, and a hassle-free factoring process that has no hidden fees or restrictive contracts. With OTR Solutions’ BOLT Instant Funding, you can expect your funds in less than 24 hours.
They also provide a user-friendly mobile app and an online client portal, allowing you to manage your invoices and payments on the fly. What’s more, OTR factoring integrates seamlessly into the DAT platform, offering factoring services, broker checks, and automated invoicing all within the DAT ecosystem.
When it comes to non-recourse factoring, OTR Solutions assumes the full risk associated with your invoice, ensuring you’re covered no matter what. With generous advance rates, swift funding, dedicated account managers, and genuine non-recourse factoring, OTR factoring solutions are primed to boost your business. They even offer additional benefits like a fuel card featuring zero in-network transaction fees accepted at over 8,000 locations, further enhancing your cash flow.
2. Apex Capital Corp
Apex Capital Corp receives positive customer feedback and is well known for its customer service. Since 1995, Apex Capital Corp has been guiding carriers through the factoring process, facilitating quick fund disbursement, and ultimately fueling business growth. Carriers of all sizes benefit from a dedicated account executive, 24/7 access to an online Account Management Portal, and the flexibility to choose between recourse and non-recourse factoring.
Carriers can also take advantage of complimentary credit checks, fuel card discounts, and a mobile app enabling factoring from any location. Notably, Apex Capital Corp does not have any termination fees, monthly minimum volume-related charges, or concealed fees, offering a flat rate of 2% on already invoiced amounts.
However, it’s worth noting that clients have reported that being contracted with Apex restricts your business from working with other accounts receivable factoring companies. If you’re specifically interested in having the flexibility to work with multiple factoring companies, that could be something to consider.
3. RTS
RTS has been simplifying carriers’ lives since 1986, delivering prompt recourse and non-recourse factoring services at competitive rates. Customers highlight their ability to receive funds within 24 hours and commend the quality of customer support. In addition, RTS offers equipment leasing options, a fuel card program, an agent/referral program, and trucking-related software to streamline your operations.
Despite their benefits, some users point out pricing-related challenges. While you should theoretically receive up to 97% of your invoice’s value upfront, pricing transparency remains a concern, and there is reportedly a lack of clarity on included fees. Additionally, RTS does not offer online factoring service applications. Instead, you must speak to a sales representative about your business and factoring options.
4. Phoenix Capital Group
Phoenix Capital Group distinguishes itself by tailoring solutions for carriers regardless of their size. Whether you’re embarking on a new carrier venture or managing an existing fleet, Phoenix Capital Group’s recourse and non-recourse factoring programs have you covered. Their flat-rate factoring accommodates various needs and risk profiles, and you can benefit from their load board, equipment financing options, and fuel card program, offering discounts at 1,900 commercial stations.
While some clients report positive relationships with their dedicated account representatives, others have encountered payment delays, difficulties in reaching representatives, limitations in approved broker choices, and inconsistent support for back-end billing.
5. Riviera Finance
Riviera Finance caters to small and medium-sized trucking companies, offering flat rates, customizable collection services, and a client portal with comprehensive access to all account information.
However, it’s worth noting that Riviera Finance lacks some of the common modern features, including an advanced mobile app, a fuel card program, or free 24/7 broker checks. With many customers coming to expect such features from other factoring companies, carriers might be best served exploring their options first.
Factor with OTR Solutions
Carriers have plenty of choices when it comes to factoring, but we confidently recommend OTR Solutions as the best option. As industry leaders, partnering with OTR Solutions means you get paid promptly and gain access to both recourse and non-recourse factoring programs. Expect competitive rates and exceptional customer service, all without any hidden fees or confining contracts. What’s more, thanks to DAT’s partnership with OTR Solutions, you can conveniently identify pre-approved brokers directly on the DAT load board.
Ready to boost your cash flow? Start factoring today!
The best factoring service on the market!
Partnering with OTR Solutions means empowering your business with transparent pricing and same-day invoice processing — and you’ll have the choice between recourse factoring and true non-recourse factoring to best suit your trucking needs.
Get started today to take control of your cash flow!
© 2024 DAT Solutions, LLC. All rights reserved. All trademarks are the property of their respective owners.
