Should you use QuickPay or Freight Factoring
When an owner-operator cannot wait more than a few days to get paid on a delivered load, they sometimes pursue factoring or broker QuickPays. For carriers, broker QuickPay and invoice or freight factoring are popular payment methods. You can get your money faster with either option, but there are differences between them.
Carriers can use QuickPay as a payment option to receive payments from brokers more quickly. A QuickPay typically takes between two and five business days after you complete the transaction instead of months.Typically, some brokers only offer quickpay for their loads. Other brokers may not offer QuickPay programs, but it's critical to note that each broker sets its own terms and costs.The trucking company will have to wait 30-90 days for payment if they can't find a better load elsewhere.In cases where they cannot wait out the payment term, trucking firms may have to pass on a load, then take the low-paying load from the fast-paying broker. In order to continue receiving quick payments, a company may choose lower paying loads. This may cause its growth to slow. Another thing that you need to be aware of is the fact that brokers profit by offering you a lower rate for a load than the load itself is worth. A QuickPay is a good option if you have strong cash flow, and don't need rapid influxes of cash.
Freight factoring is a financing method in which a trucking company sells their accounts receivable at a discount to a third-party funding source to increase cash flow. Despite being under pressure, you cannot turn down loads. On the other hand, your business won't function without constant revenue. Factoring companies can advance you up to 100 percent of the invoice after verifying that your customer is creditworthy. This provides you with cash flow immediately for your daily business operations. Factoring invoices lets you cover business expenses without having to wait until your clients pay their bills. You can pay employees, order equipment, and pay vendors immediately.
Benefits of Freight Factoring with Love's
Love’s Financial buys invoices for the loads you’ve already delivered then collects from your customer. Once approved and setup is complete, you simply send us your invoices along with proof of delivery and Love’s will pay you within 24 hours and generally the same day. Love's offers:
- High Advances: Up to 99% access to cash from your invoices
- Professional Receivables Management: Back office support, billing, collections and a dedicated account representative
- 24/7 Online Access: Review account, reporting, free debtor checks and ongoing credit support
- Fast & Flexible Financing: Hassle free account setup, no hidden fees, and same day or next day funding
- Competitive Pricing Options
- Bundled Packages Available: For greater savings, bundle factoring with discounts on fuel, tires and maintenance
- Credit: Enjoy our no fee Love's Express Credit card, with minimum $2,500 guaranteed credit line for fuel, tires, maintenance or in-store purchases
- Earn More: My Love Rewards Points when you factor with us, plus earn points on qualifying purchases
Let our Freight Factoring Specialist show you why Love’s is “The Better Way to Factor.” We offer both Non-Recourse and Recourse options with factoring facilities for individual invoices up to large receivable portfolios.