OTR Capital Reviews
Advance Amount and Fees8.6/10
Service and Support9.8/10
- Offers both discounted and non-recourse factoring.
- Provide credit approvals with an in-house credit team.
- Get paid within 24 hours of invoice submission.
- Offers same day payments for completed construction phases.
- No monthly minimums for government contractors.
- Fuel advances have restrictions (must factor ALL advanced loads w/OTR or $200 fee).
- Will not factor invoices over 90 days old.
- Can be pricey for smaller truckers.
OTR Capital Reviews
OTR Capital, LLC is a factoring company based in Roswell, Georgia with a satellite office in Denver, Colorado. A relatively young outfit (founded in 2011) OTR can nevertheless provide funding solutions for small, medium and large businesses, in a variety of industries, nationwide. The employees are clearly experienced in accounts receivable factoring. Several have come over from Noble Logistics.
OTR offers business customers invoice factoring services such as freight factoring and brokerage, credit approvals, fuel advances and back office assistance. They also offer clients insurance services through Marquee Insurance Group.1
Under the leadership of Fritz Owens, OTR is clearly doing something right. On Inc.’s website, OTR is currently ranked #1500 on their 2018 Inc. 5000 list. Also, the factor reported 2017 revenues of $26 million, up from $15.4 million in 2016, which we shared in our prior OTR Capital spotlight. The 2017 tally reflects a robust 68.8% in year-over-year sales growth.
OTR Factoring Rates
The company’s invoice factoring rates are a bit steep for owner operator/smaller trucking companies (defined as those with 1-3 trucks). According to information on STK Trucking Permits, OTC’s typical rates for 1-3 truck ‘fleets’ are 4% for non recourse factoring and 3% for recourse (discount) factoring.2 Their advance rates are generally 96% for non-recourse and 92% for recourse.3
They can command these rates because of outstanding customer service and add-on factoring services. This is evidenced by the multiple of reviews we found from long-standing business relationships.
How is OTR Capital Different from Factoring Companies?
Most trucking factoring companies just focus on the transportation industry. While freight factoring is clearly OTR’s specialty, (OTR stands for ‘Over the Road’ referring to trucking) they do offer small business funding for a variety of other industries such as:
· Staffing & Payroll
· Government Contractors
While not considered a fintech online lender like Bluevine or Fundbox, OTR recently launched their own innovative app, easily downloadable from an iPhone or Android device. It allows you to submit documents instead of having to scan, email or fax them in. Other features from the app allow trucking clients to:
· Factor Loads
· Get a fuel advance
· Check broker approvals
· Submit invoices
· Contact OTR directly
· Like them on social media (Facebook)
OTR Capital Pros and Cons
In addition to the OTR Capital reviews above, we reiterate these key pros and cons:
· Offers both discounted and non-recourse factoring.
· Provide credit approvals with an in-house credit team.
· Get paid within 24 hours of invoice submission
· Offers same day payments for completed construction phases.
· No monthly minimums for government contractors.
· Fuel advances have restrictions (must factor ALL advanced loads w/OTR or $200 fee)
· Will not factor invoices over 90 days old.
· Can be pricey for smaller truckers.
For more information on OTR Capital:
Who Uses OTR Capital?
Where does their funding come from?
Do they offer specialty financing options?