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Quick pay is an option where a freight broker pays a carrier within a few days of delivery, instead of on standard terms like net 30, in exchange for a small fee, usually about 1.5% to 5% of the invoice. For carriers, it means faster cash. For brokers, it's a way to attract carriers and, if they have the cash, earn a small return.
Most brokers pay carriers 30 to 45 days after receiving their invoice and paperwork (see days to pay). Many carriers, especially small fleets and owner-operators, can't wait that long to cover fuel and payroll. That's where quick pay comes in: the broker pays quickly and keeps a small percentage of the invoice for doing so.
How Does Broker Quick Pay Work?
- The carrier delivers the load and sends the invoice, signed bill of lading and proof of delivery.
- The carrier requests quick pay (often by checking a box on the rate confirmation or through the broker's carrier portal).
- The broker pays the invoice minus the quick pay fee, typically within 1–5 business days, sometimes the same day.
Example: on a $2,000 carrier invoice with a 3% quick pay fee, the carrier receives $1,940 within a few days instead of $2,000 in 30 days. The broker keeps $60.
Quick Pay vs. Factoring
| Comparison | Broker Quick Pay | Factoring Company |
|---|---|---|
| Who pays the carrier early | The broker | A third-party factoring company |
| Typical cost to carrier | About 1.5%–5% of the invoice | A percentage of the invoice, set by the factoring contract |
| Commitment | Per load, optional | Usually an ongoing contract, sometimes covering all invoices |
| Depends on the broker's credit | No; the broker pays directly | Yes; the factor must approve the broker |
Why Freight Brokers Offer Quick Pay
There are two main reasons:
1. To win carriers when you're new. A new brokerage doesn't have an established credit history yet, so some factoring companies won't buy invoices from your loads. That's a problem for carriers who rely on factoring. If a carrier tells you, "Sorry, my factoring company doesn't have you in their system," you can offer quick pay at a reduced fee, or even with no fee, so they'll take your load.
2. To earn a return on your capital. If your brokerage has cash available, paying carriers early and charging a quick pay fee earns you a return. You were going to pay that invoice anyway; quick pay just moves the payment earlier for a fee.
Just make sure quick pay doesn't strain your own cash flow: you're paying carriers even earlier, while your customers may still take 30–60 days to pay you. Many brokers use factoring for freight brokers to fund this.
Is Quick Pay Worth It for Carriers?
It depends on the carrier's cash flow. Quick pay is worth it when the cost of waiting (late fuel payments, missed loads, borrowing) is higher than the fee. Carriers with enough cash on hand can simply wait for standard terms and keep the full invoice.
Frequently Asked Questions
What does quick pay mean in trucking?
Quick pay means the freight broker pays the carrier within a few days of delivery instead of on standard terms like net 30, usually in exchange for a small percentage of the invoice.
How much does broker quick pay cost?
Quick pay fees usually range from about 1.5% to 5% of the invoice. Some brokers offer free quick pay to attract carriers.
How fast is quick pay?
Typically within 1–5 business days of receiving the carrier's invoice and paperwork, and sometimes the same day.
Do all freight brokers offer quick pay?
No. It's optional and depends on the broker's cash flow and policies. Many established brokers offer it; carriers often look for "freight brokers with quick pay" when choosing who to work with.
Is quick pay the same as factoring?
No. With quick pay, the broker pays the carrier early. With factoring, a third-party company buys the carrier's invoice and pays the carrier, then collects from the broker.
Want to learn how to structure carrier payments and grow your brokerage? LearnFreight's online freight broker training covers payment terms, quick pay, factoring and cash flow, with support from our team. Training starts at $60/month with a 30-day money-back guarantee.