When you deliver a load, you want your money fast. Two options exist to get paid faster than the standard net 30: quick pay (offered by the broker) and freight factoring (offered by a third-party financial company). Here's how they compare.
What is quick pay?
Quick pay is when a freight broker pays you faster than their standard net 30 terms — typically same day, 2 days, or 7 days — in exchange for a fee deducted from your rate. If your rate confirmation says $2,000 and the broker's quick pay fee is 2%, you receive $1,960 quickly instead of $2,000 in 30 days.
What is freight factoring?
Freight factoring involves selling your invoice to a separate financial company. You include a Notice of Assignment in your carrier packet, and the factoring company advances you 90-97% immediately. They collect from the broker. See our full freight factoring guide for details.
Quick pay vs factoring comparison
| Feature | Quick Pay | Freight Factoring |
|---|---|---|
| Who offers it | The freight broker | Third-party factoring company |
| Typical fee | 1.5-3% per invoice | 2-5% per invoice |
| Speed | Same day to 7 days | Same day to 24 hours |
| Contract required | No — per invoice | Yes — often 6-12 month contracts |
| NOA required | No | Yes |
| Works with all brokers? | Only brokers that offer it | Yes — most brokers |
| Credit check on carrier | No | Sometimes |
When quick pay makes more sense
- You work primarily with one or two brokers who offer quick pay
- You don't want a long-term contract with a factoring company
- Your cash needs are occasional, not consistent
- Quick pay fees are competitive with factoring rates for your brokers
When factoring makes more sense
- You work with many different brokers and not all offer quick pay
- You need consistent, guaranteed same-day cash flow
- You want fuel card benefits that factoring companies often bundle
- You are growing and adding trucks where cash flow predictability is critical
Practical advice
Many new owner-operators use quick pay selectively for brokers that offer it at competitive rates (under 2%), and use factoring for everything else. As you get more experienced and build cash reserves, you'll use both less and start collecting the full net 30 payment for more invoices.