Key facts
| Quick pay | Offered by a broker, load by load, for a fee taken from the payment |
|---|---|
| Factoring | A contract with a factor that buys your invoices and collects from brokers |
| Recourse | You buy back invoices the broker doesn't pay |
| Non-recourse | The factor takes certain credit losses; what's covered depends on the contract |
| Legal basis | Sales of invoices are covered by UCC Article 9; factors usually file a UCC-1 |
Step by step
Work out the real cost
Compare the fee as a percentage of the load for quick pay with the factoring rate plus any extra fees (ACH, monthly minimums, reserves).
Read the factoring contract
Check the term length, how to cancel, minimum volume, whether you must factor every invoice, and what recourse means in your contract.
Ask about broker credit checks
Many factors check a broker's credit before you haul. That can help you avoid slow payers, alongside checking the broker's FMCSA record.
Protect your payments
With factoring, brokers are told to pay the factor. Treat any email asking you to change where payments go as suspicious and confirm it by phone.
Checklist
- Effective cost of each option compared
- Contract length and cancellation terms read
- Recourse vs non-recourse terms understood
- Minimums and extra fees listed
- Payment-change requests confirmed by phone
FAQ
What does non-recourse factoring mean?
The factor takes the loss if a broker doesn't pay for the reasons the contract covers, often the broker going out of business. It usually doesn't cover disputes about the load itself, so read exactly what's included.
Can I factor some loads and use quick pay on others?
Only if your factoring contract allows it. Some contracts require you to send all your invoices to the factor, so check before you sign.
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Official sources
General information, not legal or tax advice. Rules change; confirm your exact situation with the agency linked above.