Glossary · Factoring
Quick pay
Also called: Quickpay, Quick-pay program
Definition
Quick pay is a broker program that pays a carrier faster than its standard terms, often within days, in exchange for a fee deducted from the invoice.
Quick pay competes with factoring for the same carrier dollar. Some brokers run it themselves; others fund it through a financing partner. For a carrier with one or two big brokers it can be cheaper than factoring, but it only covers that broker's loads.
For a factor, quick pay creates two problems. The first is adverse selection: a client may send fast-paying brokers to quick pay and factor the slow or risky ones with you. The second is diverted payment: if a broker with your NOA on file pays the carrier through quick pay, UCC §9-406 generally leaves the broker still owing you, but you now have a dispute instead of cash.
Confirm on each verification call that your NOA is on file and that the load hasn't been paid or enrolled in quick pay. Compare costs with the factoring cost calculator. General information, not legal advice.