Factoring vs. Quick Pay: Which One Costs You Less?

October 19, 2026 · 5 min read

Brokers often pay in 30 days or more. Fuel, insurance and the truck note don't wait that long. Factoring and quick pay both close that gap, but they work differently and cost different amounts.

How factoring works

You sell your invoice to a factoring company. They pay you most of it within a day or two, collect from the broker, and keep a fee, usually a percentage of the invoice.

• Recourse factoring: if the broker doesn't pay, you owe the money back. The fee is usually lower.
• Non-recourse factoring: the factor takes the loss if the broker can't pay for credit reasons. The fee is usually higher, and the fine print matters.
• Read for contract length, minimum volume, extra fees and whether you must factor every load.

How quick pay works

The broker pays you faster, often within a few days, in exchange for a discount off the load. There's no contract, and you choose load by load.

How to compare them

1. Turn each fee into dollars on the same load. A percentage looks small until you multiply it by a year of loads.
2. Count every fee, not just the headline rate: wire fees, ACH fees and minimums.
3. Check how fast you really get paid, not just the promise.
4. Ask yourself whether you need cash on every load, or only some weeks.

Many small carriers use quick pay when cash is tight on a single load, and factoring when they need steady cash flow on every load.

How TallyHaul helps

Put your factoring rate in Settings and every load shows your profit after the fee, so you can see what factoring really costs you. Invoices can go straight to your factoring company with the signed POD attached, and the payment ledger shows what's been paid, what's short and what's still owed.

This is general information, not legal, tax or financial advice. Your rate confirmation, factoring agreement and your state's rules decide what applies to you.