Freight Factoring vs. Quick Pay for Trucking Companies
When you’re trying to solve the issue of slow paying customers that make running your business more like hell than living the American Dream, you’ve got a couple of options: Quick Pay or Invoice Factoring.
Quick Pay programs by freight brokers offer you a guaranteed payment date for a fee that is often comparable to typical Freight Factoring fees. However, Freight Factoring provides numerous additional services for about the same fee and amount paperwork.
|Invoice Funding Time||24-48 Hours||24 hours- 1 week|
|Fund Your Fuel Card||YES||Sometimes|
|Fuel Card Programs||YES||No|
|Truck Repair Discounts||YES||No|
|New & Used Truck Rebates||YES||No|
|Business Supplies Discounts||YES||No|
|Tech Discounts– Phones, Tablets, Software, Load boards||YES||No|
|Unlimited Credit Checking||YES||No|
|List of Preferred Brokers||YES||No|
|Accounts Receivable Support||YES||No|
|Personal Account Manager||YES||No|
|Receivables & Finance Consulting||YES||No|
With Quick Pay, you’ve solved the problem one time, for one customer, but you’ve got no invoicing support, no tools to build a more diverse customer list, and no benefits from group discounts.
With Freight Factoring, you’re able to get advances on ALL your approved invoices and are not limited to the small amount of brokers who prvide quick pay. Freight Factoring companies also give you many more options to work with shippers that have better paying loads, reduce your risk of having too many eggs in one basket (a “customer concentration”), and reduce your expenses through discount programs.
To find out more about if Freight Factoring will work for your business, give us a call 1-800-727-3377 or send us a note with your questions.
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