Brokers often pay in 30 to 45 days, but your fuel, insurance, and drivers can't wait. Factoring and quick pay both get cash in your account sooner — they just work very differently.
Factoring is a separate company that buys your invoices. You deliver a load, send the paperwork to the factoring company, and they advance you most of the money — often within a day — for a fee. They then collect from the broker or shipper themselves. Because the factor works across all your customers, you get one fast, predictable payment routine no matter who you hauled for.
Two flavors to know: recourse factoring (you're on the hook if the customer never pays) is usually cheaper, while non-recourse factoring shifts approved credit risk to the factor for a higher fee.
Quick pay is offered by the broker on a specific load. Instead of waiting the normal 30+ days, the broker pays you in a few days in exchange for a small discount off the agreed rate. There's no third party and no long-term contract — but it's only available on loads from brokers who offer it, and the discount applies each time you use it. Make sure the quick-pay terms match what's on your cost-per-mile math so the convenience doesn't quietly erase your margin.
| Factoring | Quick Pay | |
|---|---|---|
| Who pays you early | A factoring company | The broker on that load |
| Covers | All your invoices | Only that broker's loads |
| Cost | % of each invoice | % discount per load |
| Contract | Often ongoing | Per load, no commitment |
| Extras | Credit checks, collections | None |
If most of your freight comes from a few brokers that offer good quick-pay terms, quick pay can be cheaper because you only pay when you choose to. If you run high volume across many brokers, value predictable cash flow, or want help vetting which brokers actually pay, factoring is usually the better fit — and the built-in credit checks help you avoid slow-paying customers in the first place. Either way, the real cost shows up in your profit margin, so track it like any other line item.
Whichever you choose, getting paid faster starts with invoicing faster and chasing nothing by hand. TruckSpot Dispatch builds the invoice the moment a load delivers, keeps clean driver settlement records, and shows you exactly which invoices are outstanding — so factoring submissions and quick-pay requests go out the same day instead of piling up. Less time on paperwork, more cash in the bank.
Get paid faster with TruckSpot Dispatch — free 14-day trial →Factoring is a third-party company that buys your invoices and pays you fast for a fee, no matter which broker the load was for. Quick pay is offered by the broker on that specific load, paying you early for a discount off the rate.
It depends on volume. Quick pay is usually a per-load discount and only on loads from brokers that offer it. Factoring charges a percentage on every invoice but covers all your customers and often includes credit checks and collections.
Not always. Some factoring agreements are non-recourse and all-in, while others let you factor selectively. Read the contract for minimum-volume requirements and termination terms before signing.