After two bad debts with two major clients led to tens of thousands of dollars in losses, OTR Transportation was done managing credit risk on its own. In addition to the financial losses, “we looked at the time and energy that went into trying to collect those receivables,” said Jonathan Braun, the company’s founder and director of procurement. “We got burned in that way too.”
OTR is a logistics provider that finds and sources trucking capacity to move freight throughout North America. OTR has carved out a logistics-provider niche by connecting smaller trucking operations with customers who appreciated that reliable freight-hauling options don’t begin and end with the big names in trucking.
“By understanding the particular needs of the smaller trucking company, we’ve identified synergies and properly aligned payment terms so that we can become a real partner to them,” said OTR broker Jeffrey Roadman. “We’ve been able to adjust our payment terms and still pay quickly, allowing their business to thrive.”