Quick Pay vs. Non Recourse Factoring - OTR Solutions

Quick Pay vs. Factoring

What is Quick Pay?

Quick pay is a payment option brokers offer that is typically faster than the traditional net 30 day payment of service period. However, quick pay does tend to come with some disadvantages that far outweigh factoring services.

Quick pay offers a fast and convient way of being paid without having any contractual commitments. It’s not as effective as factoring for many of reasons.

What is Freight Factoring?

Freight factoring is when a factoring company purchases your freight invoice for a discounted rate in exchange for faster payments. You should know that there are two types of factoring: recourse factoring and non-recourse factoring.

Non-recourse factoring is when a factoring company purchases your invoice for a discounted rate and assumes the risk in the event that the broker or client does not pay for the invoice. Non-recourse factoring typically offers less for your invoice than recourse factoring does – however the stability far outweighs the risk.

Is Factoring Better Than Quick Pay?

Factoring offers several benefits over quick pay and here’s how they stack up.

SolutionFactoringQuick Pay
Funding TimeReliable & FastestFast, but unreliable
Back Office Support
Dedicated Account Manager
Fuel Advance
Lumper Fee Advance
Partnerships

Payment Speed

Despite its name “Quick Pay” – quick pay is often much slower than factoring. Most quick pay services offer payment within 3-5 business days whereas factoring companies offer payment in the very same or next business day.

Winner: Factoring

Back Office Support

When it comes to the added level of back office support the key differences between factoring and quick pay services is that factoring offers it whereas quick pay you get slim to none, and in most cases, it is none.

Winner: Factoring

Dedicated Account Manager

When you are trucking and trying to maximize your cash flow having a familiar resource can prove to be a valuable asset. When comparing factoring vs. quick pay the answer is that you only get a dedicated account manager with factoring companies.

Winner: Factoring

Fuel Advance

When you’re trucking and running freight, you don’t want to think about fuel budget until after the job is done and with that – many service providers out there offer fuel advances and fuel cards. The difference between quick pay and factoring for fuel advances is simple and straightforward – factoring offers fuel advances and quick pay services do not offer any form of fuel advance.

Winner: Factoring

Lumper Fee Advance

Dealing with pesky lumper fees can range so much that it can just be downright frustrating. Having enough cash on hand is never easy to balance between the millions of other things you have to deal with, and factoring companies are always there to help with these situations and quick pay just isn’t.

Winner: Factoring

Partnerships

As an owner operator you know the importance of business growth and development and that’s one of the biggest strengths that you can get out of a factoring company. Many factoring companies offer diverse and robust partnerships that offer solutions to achieve a new level of cash flow. With OTR Solutions, you get instant access to our world-class leading partner DAT Freight & Analytics and hundreds of other partners.

Winner: Factoring

Unlock Your Cash Flow with Factoring Solutions & Tools from OTR Solutions

It’s clear that quick pay is not as good as factoring by the sheer number of disadvantages quick pay puts you at. When you factor with OTR Solutions we offer the most innovative solutions and tools to help you excel as a trucker.

Client Portal

It’s clear that quick pay is not as good as factoring by the sheer number of disadvantages quick pay puts you at. When you factor with OTR Solutions we offer the most innovative solutions and tools to help you excel as a trucker.

Client Portal
Client Support

Lumper Advances

The lumper advance program enables you to skip annoying lumper fees with advances up to $250.

Mobile App

The OTR Solutions client portal allows you to monitor your factored invoices and gain a deep understanding of your cash flow allowing you to make better informed decisions.

OTR Solutions Mobile App
ELEVATE by OTR Solutions

ELEVATE

ELEVATE is a website designer and management tool for owner operators looking to build a professional website and have unlimited branded email addresses for their trucking business.

Capital Fuel Card

The Capital Fuel Card is the best fuel card for truckers on the market with discounts at over 8,000 truck stops around the world. You can save up to $1.70 per gallon, every time you fill up.

Capital Fuel Card
safety score

Safety Score

OTR Solutions provides our clients with 24/7 access to CSA BASIC scores straight from the client portal using only your motor carrier and DOT number.

BOLT Instant Payment

BOLT instant payment allows you to get paid instantly on your invoice instead of waiting days or even weeks to get your money.

BOLT Instant Funding
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Non-Recourse Factoring

Skip the risk of non-paying brokers and clients by placing the risk on us. Factoring with OTR Solutions lets you get paid now instead of waiting on client payments.