Quick pay is the debtor’s alternative to factoring. Instead of selling the invoice to a third party, the carrier takes a discount from the broker to be paid now rather than in 30 to 45 days.
The discount is typically a low single-digit percentage. Whether it beats factoring depends on the factor’s fee, whether the carrier factors its whole book anyway, and how many brokers actually offer quick pay.
It works best as a selective tool: use standard terms with brokers that pay reliably on time, and quick pay only when cash is tight or the broker’s normal terms are unusually long.
Example
A broker offers standard 40-day terms or quick pay at a 2% discount within 48 hours. On a $2,000 invoice, quick pay nets $1,960 in two days. If the carrier’s alternative is factoring at a 1.5% fee, standard terms plus factoring is slightly cheaper — but if the carrier is not factoring that load, the 2% is the price of not waiting 40 days.
Why it matters
Quick pay and factoring solve the same timing problem with different costs. A carrier that compares them per broker, rather than defaulting to one, keeps more of each invoice.