Quick pay

Discussion in 'Ask An Owner Operator' started by KeyFactor, Apr 29, 2013.

  1. KeyFactor

    KeyFactor Light Load Member

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    I'm curious about the cost and time savings of the different Quick Pay options out there. In your answer, please indicate how long you'd have to wait if you did not elect Quick Pay.
     
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  3. Ezrider_48501

    Ezrider_48501 Road Train Member

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    depends on your agreement 30-60 days 2 weeks? direct freight? brokered? leased to carrier?
     
  4. G/MAN

    G/MAN Road Train Member

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    I know one broker that pays the same day that they receive the bills. There are others who pay within a couple of days. Quick pay fees vary from about 1 1/2-8%. You can expect to wait for 30-45 days with most brokers and/or shippers unless you opt for the quick pay option. I know of some who will pay within 20 days or even less without having to pay their quick pay fees. But, you should count on at least 30 days from the time the invoice has been received. This business is no different that any other business when it comes to paying receivables. The norm is net 30 days.
     
    Epmtrucks Thanks this.
  5. KeyFactor

    KeyFactor Light Load Member

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    So if I understand correctly, you're typically taking a discount of 1.5% - 8% to get your money to get your money in a couple of days instead of 20-30 days from submission of invoice? If it's 1.5% to save 30 days, that would be great, but if it's 8% to save 20 days, it seems quite expensive. Could you guess what are the most typical terms within the range in your experience?
     
  6. KeyFactor

    KeyFactor Light Load Member

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    Could you give me an example under each of the different scenarios you mentioned?
     
  7. atrucker

    atrucker Light Load Member

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    I have been abused by almost any broker I have dealt with and some how the law and any other system only protects them. They owe me tens of thousands in unpaid bills and monopolizing the market in a way that even after trying for 4-5 days to get the market rate but some how they all keep me to the rate of $1.35/mile kind of rate. No matter who I called and how hot the market is, they all will tell me the same rate going to North East ( NJ PA CT etc.) I would suggest you record and document every thing and do not give any broker any credit either do COD or 50% up front. I have been in business for three years never cursed or yelled any one and always been on time and courteous but the brokers side has always been the lowest life Traaaaaash type. So I only deal with 100% credit score and at least 3 years in business.
     
  8. KeyFactor

    KeyFactor Light Load Member

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    Sorry to hear. I own a factoring company, perhaps even more hated than brokers, but I'd like to think we're not all scammers. Anyways, my question was aimed at understanding typical Quick Pay rates because the ones I'm aware of are higher than factoring rates.
     
  9. osumike33

    osumike33 Light Load Member

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    Middletown, OH
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    From some of the things I have read, it seems the contracts for some factoring companies are so restrictive or give too much authority to them that a lot of guys stay away.....though I'm sure there are good and bad, as with most things.
     
  10. KeyFactor

    KeyFactor Light Load Member

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    Right, so for example, if you didn't want to factor all your invoices but only get immediate payment on a few and maybe not all the time, then I agree that Quick Pay is better. Some factors want all invoices from your customers for the duration of the agreement, but some will be okay just buying all invoices from just a few of them. What are the other main reasons/restrictions?

    Some of the restrictions are designed to protect both factor and carrier...for example, if we don't want to buy an invoice from a broker because they have bad credit, you're probably better off not hauling for them.
     
  11. Epmtrucks

    Epmtrucks Medium Load Member

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    1/1/13 through 4/30/13 .02 per mile quick pay. We try to add any quick pay to the rate when we negotiate the rate. 1.5% landstar 48 hours, access america 3%, 48 hours, trinity 3% 48 hours, all direct deposit or comdata network card. Mercer no charge 48 hours. They are the only brokers that pay that quick to my knowledge. Customers direct is 7 business days per regulation.
     
    Last edited: May 3, 2013
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