Post-grant operations
Quick pay vs factoring
Quick pay and factoring solve the same problem, broker invoices that pay in weeks, from opposite ends. Quick pay is the broker paying early for a fee, one broker at a time. Factoring is a third party advancing cash on every broker's invoices under one agreement. This page compares them on published terms.
By Evan Reid, Founder of Haul Handbook · Updated Jul 22, 2026
What quick pay is, in the brokers' own terms
Quick pay is not a product you shop for across the market; it is a setting inside each broker relationship. The published examples show both the shape and the spread. TQL's carrier FAQ publishes standard pay terms of 28 days. The same FAQ lists two quick pay options: payment in 1 day at 5 percent off the gross pay of the shipment, or payment in 7 days at 3 percent off the gross pay of the load.
Not every broker prices it in the open. C.H. Robinson's quick pay page advertises payment within 2 business days instead of the standard 28, with no forms to submit and no credit review required; the page publishes no fee figure. Where no fee is published, get the discount in writing before you rely on it.
The structural limits are the same everywhere: the discount comes off the gross, enrollment is per broker, and the option exists only where a broker offers it. The brokers you find on load boards each run their own version, which is one more variable when sourcing loads with a new MC.
What factoring does differently
Factoring replaces broker-by-broker programs with one agreement that covers your whole book. RTS describes the structure on its freight factoring page: the factor purchases the invoice, advances more than 90 percent of the total within 24 hours, and sends the remaining balance minus its fee once the invoice is paid. The full walkthrough lives in the factoring explainer.
The price of that coverage: altLINE publishes that invoice factoring rates tend to range from 1 to 5 percent of the invoice value, driven by factored volume, invoice age, debtor credit, and debtor concentration. How that percentage is structured, and the add-on fees around it, are broken down in factoring rates explained.
One legal difference matters when you try to mix the two. Under UCC Section 9-406, once the broker or shipper receives notification that the invoice has been assigned and payment is to be made to the factor, it can discharge the debt only by paying the factor, not the carrier. A factored invoice cannot also ride a broker's quick pay; the broker owes the factor, not you.
How to actually decide
Strip the branding and you are comparing four things: the per-invoice cost on your real loads, how much of your freight each option covers, who takes the loss if the broker never pays, and how much back-office work you keep. Quick pay is usually the simpler and sometimes the cheaper tool for a carrier concentrated on a few strong brokers. Factoring earns its fee through breadth: every broker covered, broker credit checked before you book, and collections handled for you.
Frequently asked questions
What is broker quick pay?
- Quick pay is the broker paying its own invoice early in exchange for a discount off the gross pay of the load. It is an in-house program: each broker sets its own fee, timing, and enrollment, and it only ever covers that broker's freight.
Is quick pay cheaper than factoring?
- It depends on the broker's published schedule and the factoring quote you are comparing. One published example: The same FAQ lists two quick pay options: payment in 1 day at 5 percent off the gross pay of the shipment, or payment in 7 days at 3 percent off the gross pay of the load. For factoring, altLINE publishes that invoice factoring rates tend to range from 1 to 5 percent of the invoice value, driven by factored volume, invoice age, debtor credit, and debtor concentration. Compare the per-invoice cost on your actual loads, not the labels.
Can I use quick pay and factoring at the same time?
- Not on the same invoice once a factoring agreement covers it. Under UCC Section 9-406, once the broker or shipper receives notification that the invoice has been assigned and payment is to be made to the factor, it can discharge the debt only by paying the factor, not the carrier. Carriers without an all-invoice factoring agreement can still mix approaches broker by broker.
Which is better for a brand-new authority?
- Factoring covers every broker under one agreement and adds credit checks on the brokers you book with, which is worth a lot when every customer is a stranger. Quick pay wins when most of your freight comes from one or two brokers whose published terms beat your factoring quote.
Sources
Primary statutes and official agency pages this guide relies on. Laws and fees change, so confirm against the current source before you act.
- TQL Carrier FAQ: Payment Terms and Quick Pay Options · Total Quality Logistics
- Quick Pay for Carriers · C.H. Robinson
- Freight Factoring for Trucking Companies · RTS Financial (Shamrock Trading Corporation)
- Invoice Factoring Rates Explained · altLINE, The Southern Bank Company
- UCC Section 9-406, Discharge of account debtor; notification of assignment · Cornell Law School, Legal Information Institute
Haul Handbook publishes educational information about trucking registration and compliance requirements. This is not legal, financial, or tax advice. Rules, fees, and deadlines change; confirm with the agency before you file or pay.