Quick Pay vs Factoring — The Real Math for Owner-Operators
The Short Answer
Broker quick pay: 2–5% fee for 24–72 hour payment (varies by broker). Factoring: 1.5%–5% fee for same/next-day payment on any invoice. Factoring wins for most O/Os because it works across all brokers uniformly. Quick pay wins load-by-load when the broker's rate is under 2.5%.
Every owner-operator faces the same trade-off at every load: wait 30 days for full pay, or pay a fee for cash now. Here's how to decide.
Depends on the broker's quick pay fee. If the broker charges under 2.5%, quick pay is cheaper than typical factoring. If they charge 3%+, factoring is cheaper. But factoring works across ALL brokers uniformly — quick pay policies vary by broker.
The real math on a $2,400 load
| Option | Fee | Net to you | Days to cash | APR equivalent |
|---|---|---|---|---|
| Net 30 (no fee) | $0 | $2,400 | 30 | 0% |
| Broker quick pay 2% | $48 | $2,352 | 2 | ~24% APR |
| Broker quick pay 3% | $72 | $2,328 | 2 | ~36% APR |
| Broker quick pay 5% | $120 | $2,280 | 2 | ~60% APR |
| Factoring 2.5% | $60 | $2,340 | 1 | ~30% APR |
| Factoring 3.5% | $84 | $2,316 | 1 | ~42% APR |
When quick pay wins
- Broker's quick pay is 2% or less
- You have 60+ days of operating cash cushion
- The broker you're using is a repeat customer (not one-off)
- Your factoring company charges 3%+ (many do for smaller operators)
When factoring wins
- You work with 10+ different brokers each month — factoring is one-stop
- Your factoring rate is under 2.5%
- You want back-office done for you (invoicing, collections, credit checks)
- You need fuel card + roadside bundled (RTS, TAFS, Apex all bundle)
When net 30 wins
- You have 60+ days of operating cash in the bank
- The broker is 100% reliable payer (verified through Ansonia/RTS credit)
- You have a personal line of credit at < 12% APR you can float against
The hybrid approach most established O/Os use
Factor NEW brokers automatically until 3+ paid invoices proves reliability. Move reliable brokers to net 30. Skip quick pay entirely (it's rarely better than factoring long-term).
Hidden costs to include
- Factoring recourse vs non-recourse: non-recourse is $0.50–$1.50/hundred more but protects you if broker doesn't pay
- ACH/wire fees ($5–$25/invoice) — check your factor's contract
- Minimum monthly volume requirements — some factors charge $200+/mo if you don't factor enough
- Reserve holdback (typically 5–15%) that gets released after broker pays
Frequently Asked Questions
Can I factor some invoices and net 30 others?+
Yes with most factors. Check for 'volume commitments' in your contract — some require you factor a minimum $ per month or all invoices from certain brokers.
What is recourse vs non-recourse factoring?+
Recourse: you pay back the factor if the broker doesn't pay. Non-recourse: factor eats the loss (but only for their own credit-approved brokers). Non-recourse costs 0.5–1.5% more but is worth it for peace of mind.
Are there any brokers with free quick pay?+
Some larger brokers (CH Robinson, Coyote, Convoy) offer 'free' quick pay at 5–7 days instead of 24 hours. Standard quick pay at 24-48 hours is almost always fee-based.