SEATTLE, Sept. 24, 2024 (GLOBE NEWSWIRE) — Outgo, the financial hub for freight carriers, today announced several milestones in its mission to fix freight payments for carriers, as well as a previously undisclosed equity fundraise. Outgo’s mission is to increase transparency and eliminate exorbitant rates, hidden fees, and long contracts with the most flexible and intelligent financial products in freight. To power this mission, Outgo revealed a previously undisclosed $15M fundraise from top venture capital investors. The company has deployed this investment to upend the freight payments experience, starting with factoring. Today, Outgo is announcing it is now the industry leader in funding speeds for carriers.
Founded in 2021, Outgo today announced $15M in previously undisclosed funding led by Gradient Ventures, Construct Capital, with participation from Neo, PSL Ventures, Bezos Expeditions, Fintech Fund, Operator Stack and Upper90. Additionally, the company has secured a $50M credit facility raised from Upper90 for receivables purchasing.
With this funding in hand, Outgo is rebuilding the entire factoring process and carrier experience with automation and technology at the forefront. This approach stands apart in an industry plagued by slow funding speeds, high fees and a general lack of transparency. Carriers typically wait 30 days or longer to receive payment and legacy factoring companies have not made meaningful improvements in funding speeds. However, Outgo today announced its commitment to four-hour funding speeds for carriers, but also that it over-delivers by approving 50% of invoices within 90 minutes, and 25% within 15 minutes. On top of that, funding is available to carriers 24/7, with no delays for banking holidays or transfer cutoffs.
“The very purpose of factoring is to get carriers paid faster, but the industry has failed to innovate on speed, flexibility, and customer experience,” said Marcus Womack, Chief Executive Officer and co-founder of Outgo. “We have made it our first priority to bring flexibility and control to each and every corner of factoring experience, and to do so with the explicit purpose of accelerating fundings, and lowering carrier cost. We are thrilled to have the support of customers and investors who share our passion for improving carrier financial health.”
The severe down-cycle in freight has decreased per-mile rates for carriers, and increased competition for work. At the same time, the elevated interest rate environment has led to higher factoring rates. However, Outgo’s dedicated focus on automation has allowed it to continue to offer 1% factoring options to carriers of all sizes, while also bucking the trend of predatory factoring practices by offering publicly posted pricing and low fees.
“The Outgo team is truly dedicated to improving the lives and businesses that move freight in America,” said Zach Bratun-Glennon, Partner at Gradient Ventures. “The team has technology and fintech expertise to move freight financing into the future, as well as a highly customer-centric perspective from years of leadership at the world’s top logistics and freight companies.”
“I rely on Outgo to get my funds fast, and at rates I just couldn’t get anywhere else,” said Vildana Hodzic of H&V Transport. “The fact that I can access funds within 15 minutes of completing a delivery feels like magic. Outgo is technically my factoring company, but it feels like something else entirely.”
Outgo’s vision is to revolutionize the freight payments experience for carriers, and it continues to rapidly build and launch financial products to help carriers grow their business and succeed.
ABOUT OUTGO
Outgo is a modern payments platform for freight. Outgo has rebuilt factoring to put the carrier first, and bundles banking and factoring to make funds instantly available. Founded by former executives at top transportation companies including Uber and Convoy, the company was launched in 2022 and is headquartered in Seattle. To learn more, visit https://www.outgo.com.
Outgo Inc is a financial technology company, and is not a bank. Banking services provided by TransPecos Banks, SSB and Blue Ridge Bank, N.A., Members FDIC.
The Outgo Business Visa Debit Card is issued by TransPecos Bank, SSB and Blue Ridge Bank, N.A., pursuant to a license from VISA U.S.A. Inc. and may be used everywhere Visa is accepted.