Quick Pay For Truckers - Is It Really The Best Solution?

Our site is under construction but you can still find out if Quick Pay for truckers is the ideal answer to cash flow issues.

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A lack of cash reserves on hand leads to concerns meeting trucking company expenses including fuel, maintenance, tires, loan payments, insurance and payroll. Unfortunately vendors will not wait 1, 2, or 3 months for their payments and employees expect to be paid on time, every time.

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To overcome cash flow problems, trucking companies have a choice factoring and Quick Pay as solutions. Quick Pay is a service offered by most freight brokers, not to be confused with the service of the same name offered by major banks such as Chase.

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What is Quick Pay For Truckers?

 

Quick Pay is when a broker advances the trucking company for freight invoices in exchange for a small fee. Quick Pay is convenient because the trucker gets paid anywhere from 1-7 days after the load is delivered.

 

Brokers charge a fee of 1-5% depending on how fast payment is required by trucker. This would appear to be better than waiting a month or longer for funds.

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The Downside Of Quick Pay

 

Do brokers use scare tactics of slow payment from shippers to encourage Quick Pay acceptance? They charge you 5% to get paid tomorrow making Quick Pay another profit center for the broker at your expense.

 

The net result is payment will never be made quickly unless you discount the freight bill.

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The Quick Pay fee may not be the only expense involved. Some brokers stipulate that checks will be issued and then charge an additional fee for that. Of course, if it’s mailed while you’re on the road it may be sometime before physically getting your hands on the check.

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The Real Benefits Of Factoring Over Quick Pay

 

Each broker have their own rates, policies and procedures and can only offer Quick Pay on their own loads. That means working with multiple brokers you will have multiple freight bill submissions along with multiple payment processes to track and manage. Less profit, more paperwork!

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Factoring is the all round better and easier solution. Our rates are comparable to Quick Pay fees and payment is made by direct deposit into your bank account within 12 hours with funds available for immediate use. No waiting on checks and making trips to the bank.

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We can handle any or all freight bills from multiple brokers and track all payments on your behalf as part of our service. That means far less paperwork for you!

 

Sometimes it would seem that brokers are working against the profitability of truckers, whereas we are working with you to grow your business and profits. The more success our clients obtain the more we grow, therefore it’s in our best interest to service clients to the best of our ability.

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