QuickPay vs Traditional Factoring: Which is Better?

Traditional factoring companies typically pay within 24 hours of invoice submission, sometimes same-day. QuickPay programs from brokers usually pay in 1-5 business days depending on the program, which is faster than standard 30-day terms but slower than top factoring companies.

QuickPay fees are typically 1-3% of the invoice, which is often lower than factoring rates of 2-5%. However, QuickPay is only available from brokers who offer the program, limiting its availability.

Traditional factoring works with any broker or shipper — you can factor any invoice. QuickPay is only available from specific brokers who offer the program, which limits your negotiating power and load selection.

QuickPay does not involve credit checks or contracts. Factoring companies check the credit of the brokers paying the invoices and may require personal guarantees or minimum volume commitments that affect your financial flexibility.

Factoring companies bundle valuable services — fuel cards with discounts, credit checks on brokers, collections on unpaid invoices, and cash flow management tools. QuickPay is just faster payment with no additional services.