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OTR Solutions Review

OTR Solutions, formerly known as OTR Capital, is a full-service freight factoring and trucking technology company that leverages easy-to-use technologies to provide timely, reliable cashflow, back-office, and operating solutions to U.S. based carriers of all sizes. 

The company is considered a top contender in the factoring industry and is most widely known for their true non-recourse factoring program for new and small carriers, and its fleet factoring program designed for mid to large sized companies.

The following comprehensive outline goes over what the company is and what it does, as well as the pros and the cons of working with OTR Solutions. If your company has considered using a factoring provider, this review should help you decide whether OTR is the right partner for your needs.

What Is OTR Solutions?

OTR Solutions is a Georgia based factoring company founded in 2011 under the name OTR Capital offers factoring and back-office technology solutions to carriers and brokers in the transportation space. Most widely known for their true non-recourse program and highly rated customer service, they offer simple, reliable, and straightforward services to solve back office and cashflow issues experienced by many carriers. 

The firm provides funding to carriers by purchasing invoices (accounts receivable) from the carrier at a small discount. After the invoice is purchased and the carrier has received the funds, OTR will handle billing and collecting from the end customer. 

Although OTR Solutions’ factoring services and programs may seem in line with programs offered by similar companies in the transportation factoring space, there are a few key differences that make them the standout option for carriers. Read on to find out more. 

OTR Solutions FAQs

Before diving into the pros and the cons of working with OTR Solutions, let’s cover some frequently asked questions so that you can learn more about the company. 

What Percentage Does OTR Solutions Charge?

OTR Solutions offers competitive, transparent factoring rates, with specific rates varying depending on the carrier, primarily determined by the type of program offered (true non-recourse or standard recourse) and the expected monthly factoring volume. 

Naturally, the rate OTR charges for its true non-recourse program is slightly higher when compared to recourse programs because it assumes full liability of the invoices purchased. OTR Solutions’ true non-recourse factoring program stands out against its competitors’ generic non-recourse factoring, which offset some liability back onto the carrier if collecting on a factored invoice is unsuccessful after a set period.

That said, the greatest disparity in OTR’s percentages involves the rates that it charges for its fleet factoring program, also known as recourse factoring. OTR Solutions’ Fleet Factoring program offers a wide range of customizations to fit a carrier’s operation, where rates can fall to less than 1% for large fleet clients.  

Fleet factoring is best suited for operations who operate at least 5 trucks, topping out at several hundred for its largest clients, and for carriers who works directly with shippers or customers with less credit history than a typical 3PL.

Overall, OTR Solutions offers competitive programs that can service virtually any U.S. based carrier – from owner-operators to large fleets. Boosted by industry leading customer service, technology, and accounts receivable procedures, carriers who factor with OTR Solutions often see increased freight invoice values, consistent loads, and better business performance year-over-year due to the increased protections under OTR’s programs. 

How Long Does It Take OTR Solutions To Pay?

OTR Solutions has become popular in the freight industry because of its rapid turnaround times and enhanced customer service allowing for fast and easy adjustments to invoices already submitted for payment. 

On average, OTR Solutions approves and schedules payment to its clients the same business day and offers a variety of payment options including ACH, wire, BOLT Instant Funding, and pre-paid fuel cards

Since invoices are accepted electronically through their proprietary Client Portal and OTR Solutions Mobile App, managing daily invoices submissions is easy. Status of submitted invoices and communication with a dedicated operations manager are also housed withing their portal and app, further streamlining the process. 

What Are the Requirements For Working With a Factoring Company?

Getting started with OTR Solutions is quite easy. Completing the application process can take as little as a few minutes, with full approval and the ability to start factoring often issued the same day for active carriers. 

There are very few reasons a carrier would not be approved to factor with OTR Solutions as there are no credit checks or operating volume requirements in place. Applicants must pass a standard background check on company owners and have no active liens filed against themselves or their company. 

How Is OTR Solutions Different From Other Factoring Companies?

OTR Solutions’ true non-recourse program and renowned customer service sets it apart from other factoring providers in the space. When it comes to non-recourse, most factors only offer protections when a broker or customer goes out of business, where OTR extends these protections to any cleanly delivered load, even if the customer or broker is still in business. 

With a unique operations structure, every client receives a dedicated account manager and team allowing them to work with the same representatives every time. OTR Solutions’ operations team does not utilize voicemails and answers every call with average hold times of less than a minute, in stark contrast to what carriers see with competitors. 

Services OTR Solutions Offers

OTR Solutions’ suite of services includes the following:

As you can see, OTR Solutions does much more than simply factor freight invoices. The firm is one of the most dynamic companies operating in the factoring industry. 

Performance Factors of OTR Solutions

OTR Solutions is an excellent factoring partner for carriers who need cashflow and back-office support.  The company can easily scale with the carrier, offering program changes, updates, and customizations as needed. They can handle any volume of invoices a carrier needs it to and does not require carriers to factor every customer if they choose not to. 

OTR Solutions is also known for its highly responsive customer service team. The company offers multi-channel support so that clients can obtain prompt assistance whenever they encounter an issue or need support.  

Best For 

Factoring with OTR Solutions is best for businesses who fit into these categories:

  • Have an active Motor Carrier Number and/or DOT number
  • Work with freight brokers and/or shippers in the spot and contract freight markets
  • Need expedited cashflow
  • Prefer a centralized back office
  • Equipment types of dry van, reefer, flatbed, power only, hotshot, straight truck, sprinter van, step deck, specialized/heavy haul, etc.
  • New companies entering the market
  • Established operations
  • Mid to large sized trucking companies

If this sounds like you, then OTR Solutions might be the right solution for all your freight factoring and back-office needs. 

Cost

OTR Solutions offers both true non-recourse and fleet factoring (recourse) programs. The company’s standard rates for these services range from one to three percent on average. They include most fees within the factoring rate, making the rate one of the only expenses. 

However, some non-transportation-based factoring programs for small businesses might have rates as high as eight percent for non-recourse factoring, making OTR Solutions a great value. These extremely steep rates are rare, which means that most customers can expect to pay no more than four percent of the invoice value for factoring.

Pros & Cons

Advantages

The most notable benefits of working with OTR Solutions include the following:

  • The only true non-recourse factoring available
  • Easy to apply with little requirements
  • No setup fees or extra charges to freight factor
  • Funding in less than 24-hours 
  • Fuel advances & discounts
  • Mobile App & Client Portal
  • Dedicated operations team with no voicemails
  • Good factoring rates for large businesses
  • Scalable programs for new and small businesses
  • Exceptional customer service
  • Additional solutions to drive success

Additionally, OTR Solutions offers genuine non-recourse factoring, which is a type of factoring where the factoring company assumes all liability once a cleanly delivered load is factored. This set-up means that if the broker or customer never pays OTR for an invoice you factor, they will absorb the loss, not the trucking firm. 

While numerous factoring companies advertise non-recourse factoring, many of these agreements are filled with loopholes. The main difference being their liability only extends to customers and brokers who file for bankruptcy before paying the factor. Seeing that all non-recourse factoring companies monitor broker and customer credit, they hold the carrier liable for non-payments often caused by mistakes and errors in their billing process with your customers. 

This can not only cause headaches and loss of income for you, but also the companies you work with. This set-up means that factoring companies are often able to go after trucking businesses to collect on delinquent accounts. 

When OTR enters into a non-recourse agreement, the company claims to absorb all responsibility for collecting on each A/R invoice. That said, it is the trucking company’s responsibility to carefully read the terms and conditions of every factoring agreement to ensure that, as a company, it is protected from liabilities. 

Disadvantages

  • Here are a couple of potential downsides of working with OTR Solutions: Slightly stricter on broker credit approvals
  • Fuel and lumper advances are only available until 8:00pm EST on weekends

OTR Solutions’ factoring services are most popular and appealing to new companies and small to medium size operations.  However, there are plenty of instances where fleets can benefit from their customizable Fleet Factoring program.

Should I Partner with OTR Solutions?

If you operate a trucking company in the U.S. then you should factor with OTR Solutions. OTR is constantly innovating, releasing new solutions and technologies that are often free to existing clients and cover a wide range of needs across operations of all shapes and sizes. The firm is arguably one of the best partners for small businesses and owner-operators thanks to its true non-recourse program and mobile app. Therefore, you should do your research, check online reviews from other carriers, and make sure to compare the value a factoring program provides to your business over simply comparing them by what they charge.

 

User Reviews

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love it
tool set — 11/14/23

thanks! it was so great and i love yall so much this was the best thing to every happen to me yessir foreal love it

HORRIBLE
[email protected] — 11/13/23

First off, WORST factoring company you can choose.

Awesome Company!
Roy Longhitano — 10/23/23

Amazing company, the staff is top notch, they get things done fast. Awesome fuel card with great discounts. The Bolt program is great, you can get paid the same day you deliver a load. I highly recommend OTR and Ellie Conoley my account manager.

Technical Specs

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