Quick pay and factoring solve the same problem — freight bills pay in 30 to 45 days while fuel and payroll are due weekly — with different costs and coverage.
Quick pay is per-broker and optional. On a given invoice it might cost a low single-digit percent to be paid in one to three days. It is a good tool when one broker’s standard terms are unusually long, or when you occasionally need cash faster, and you can pick and choose.
Factoring is a standing arrangement. A factor advances most of the invoice the next day, collects from the debtor, and charges a fee on every load (sometimes requiring your whole book). It buys speed and predictability, and can offload some credit risk under non-recourse terms, at a consistent haircut.
The honest default: standard terms with reliable payers, quick pay selectively, and factoring when the timing gap is a constant strain rather than an occasional one. Run the actual numbers for your broker mix rather than assuming one is always cheaper.
Terms in this answer: Freight Factoring, Quick Pay, Recourse vs. Non-Recourse Factoring, Days Sales Outstanding (DSO)
In Trailflow: accounting and settlements.