Freight Factoring: Why OTR Funds in 2 Minutes, Non-Recourse

Clayton Griffin, President of OTR Solutions, spoke with FreightWaves about the company's innovative non-recourse factoring model, which enables instant funding for trucking carriers. OTR Solutions' factoring business is projected to grow around 60% in 2026 compared to 2025, driven by a 35% increase in invoice count. The company currently supports approximately 23,000 carriers and processes invoices for around 10,000 brokers, positioning itself in a significant portion of the brokered trucking market.

OTR Solutions' OTR Select platform offers brokers historical spot-rate data and pre-vetted carrier options, drawing exclusively from carriers that have undergone OTR's stringent underwriting process. This platform is an evolution of the company's document-imaging and invoice-verification technology, specifically an AI-driven solution.

Griffin highlighted that the company's factoring portfolio is predominantly non-recourse, meaning carriers are not held responsible if a broker fails to make payments. This approach was demonstrated during the Convoy collapse, where OTR absorbed losses exceeding $100 million, rather than seeking reimbursement from carriers.

OTR Solutions is expanding its services into data and capacity-matching areas. The inflation-adjusted spot rates for freight remain below OTR's long-term median and below the carrier breakeven point, as noted in the American Transportation Research Institute's 2025 cost-per-mile study. Griffin expressed skepticism about regulators easing safety-focused rules that are currently limiting capacity, suggesting that meaningful organic capacity growth would require rates to rise substantially above current levels.