The technology behind making carrier payments instant

The freight industry has long relied on factoring to ensure carriers get paid quickly. Despite its consistent presence in the industry, however, the factoring landscape hasn’t seen many meaningful changes since its inception. 

Payments still regularly get held up on the way to carriers, with banking transfers often causing frustrating delays. This is especially true during weekends and holidays, when a transaction that should take minutes can stretch into days.

“Our financial system has a number of bottlenecks, and transfers between banks are one of the most painful for small businesses,” explains Marcus Womack, CEO of Outgo. “When a factoring company sends money to a carrier, funds can get hung up between banks for days. If you actually want to deliver on the dream of instant payments, you have to bring banking¹ and factoring together.”

Combining banking infrastructure with automation and A.I. enables instant payments

Outgo has invested heavily in technology in order to eliminate common funding delays. By combining factoring services with a comprehensive banking¹ suite, Outgo enables payments to move within the same banking system. This process eliminates the need for interbank transfers, slashing payment times from hours – or even days – to mere seconds.

Traditional factoring involves multiple time-consuming steps to get from invoice submission to bank transfer completion. By contrast, Outgo’s streamlined system uses automation and AI to cut straight to payment approval and disbursement.

“We integrate AI and automation into our entire invoice lifecycle,” said Mike Bohlander, Outgo CTO and Co-Founder. “For example, we use AI to automate the extraction of relevant information from load documents like ratecons and BOLs, which enables us to make faster funding decisions.”

A closer look at the technology remaking factoring

Outgo’s innovations don’t stop at combining banking¹, factoring, and AI. The company has also introduced Smart Factoring, a transformative advance in cash flow management. 

The centerpiece of this technology allows carriers to break down invoices and factor only the amount they need. This is a significant departure from traditional factoring, where carriers must factor entire invoices, even if they only need a small fraction to fund operating expenses.

Benefits for carriers include:

• Price: Outgo’s software allows it to reduce steps in the process and increase other efficiencies. By shrinking its own costs, Outgo can pass the savings on to its customers.
• Speed: Instant access to funds: With Outgo’s debit card, carriers can access their funds immediately (24/7), while also enjoying reduced fees of just 1% when using the card.
• Flexibility: Outgo’s platform enables carriers to factor exactly what they need, avoiding unnecessary costs. For example, if a carrier has a $3,000 invoice but needs just $300, they can factor that precise amount through Outgo’s system.

By providing tools that enable smarter cash flow decisions, Outgo not only accelerates payments but also gives carriers control over how and when they use their funds.

Looking ahead: A future with instant payments and more

Each month, the number of invoices processed in just seconds increases, but the future of factoring with Outgo will be more than faster funding speeds. It will also include innovations like instant advances and driver solutions, which will further reduce delays and improve cash flow for carriers and drivers alike. As the company continues to innovate, carriers can look forward to an all-in-one financial platform that truly meets the demands of modern logistics.

Click here to learn more about Outgo.

¹Outgo Inc is a financial technology company, and is not a bank. Banking services provided by TransPecos Banks, SSB, Members FDIC. The Outgo Business Visa Debit Card is issued by TransPecos Banks, SSB, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa is accepted.