When it comes to maintaining a healthy cash flow for your trucking business, both factoring and quick pay can be valuable solutions. Although these two options may appear to be very similar, they do have key differences.
Invoice Factoring is a financial agreement where a factoring company purchases your unpaid invoices, and the factoring company then takes on the responsibility of collecting payment from your customers. With factoring, it will typically take about 24 hours for your invoices to be funded. On the other hand, quick pay is an offer by a broker that allows you to receive expedited payment on loads that you haul exclusively for the specific quick pay provider. It typically takes 2-5 days to receive payment from quick pay.
Invoice Factoring vs Quick Pay
Below are the key differences between the factoring and quick pay:
1. Flexibility of Partnerships
With invoice factoring, you have the freedom to haul loads with any broker or client. Quick pay is specific to the provider, meaning that they will not fund any of the loads that you didn’t book through them.
2. Funding Coverage
Since quick pay only funds the loads you book through your provider, you will have less flexibility of cash flow for your business. With factoring, you will never have to worry whether your invoice will be funded or not.
3. Support Outside Of Financial Assistance
At the end of the day, a quick pay provider can only offer financial assistance. Top factoring companies typically provide other services to support the back-end operations of your trucking business, like equipment selection & leasing, IFTA & IRP, and safety & compliance.
Start Factoring Today!
Since 2010, our customers have benefited from a consistent and reliable source of cash flow to fuel their trucking businesses. We provide competitive rates, will match quick pay quotes, and have no hidden costs or fees.
To get started factoring with Aladdin today, fill out our contact form here and a team member will get in-touch with you!
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