Quick Pay
Quick pay is an accelerated payment option offered by some freight brokers that allows carriers to receive payment within 1–3 business days instead of the standard 30–45 day net terms, in exchange for a fee of 1–5% of the invoice amount.
In Depth
Quick pay solves the cash flow problem without full factoring. Instead of selling the invoice to a third party, the broker accelerates their own payment for a fee. Quick pay fees are typically 1.5–3% — less than most factoring arrangements.
Not all brokers offer quick pay, and those that do may impose conditions such as minimum invoice amounts or approved carrier status requirements. Quick pay is ideal for carriers who have occasional cash flow needs but do not want a permanent factoring relationship.
When comparing quick pay to factoring, consider that quick pay is transactional (pay the fee per invoice as needed) while factoring typically involves a recourse agreement and minimum volume commitments.
Usage Example
Example: 'The broker offered 2% quick pay. On a $2,400 load, that's $48 to get paid in 2 days instead of 30.'
Related Calculators
Related Terms
Factoring
Freight factoring is a financial service where a carrier sells its unpaid invoices to a factoring company at a discount (typically 2–5%) in exchange for immediate payment — usually within 24 hours rather than the standard 30–45 day broker payment cycle.
Rate Confirmation
A rate confirmation (rate con) is a document issued by a broker to a carrier that outlines the terms of a load: pickup and delivery locations, freight description, rate, accessorial rates (detention, TONU), and payment terms.
Broker
A freight broker is a licensed intermediary that connects shippers who need to move freight with carriers who have available capacity. Brokers earn a commission (the spread between what shippers pay and what carriers receive).
Gross Revenue
Gross revenue in trucking is the total amount a carrier invoices for transportation services before deducting any expenses, including linehaul, fuel surcharge, detention, and other accessorials.
Frequently Asked Questions
Is quick pay better than factoring?
Quick pay is simpler and often cheaper but only available from certain brokers. Factoring provides consistent fast payment across all brokers.