Quick pay

The 8% is the highest that I have been quoted. I won't discount my receivables that much. I don't mind doing 1.5-2% if I can get my money turned in a couple of days, but when rates go much higher you could be as well off with a factor. Most of those whom I am familiar charge no more than 5%. That is very high to be paid in a couple of days. If you are a carrier and plan on dealing with someone who discounts that much, then you should add something to the rate to offset the higher cost. I would think that the average quick pay discount will fall between 2-4%. My guess is that brokers who offer quick pay factor their receivables and pass the cost on to the carrier.

 

When interviewing unfamilier brokers during rate negotiations, I feel more comfortable using brokers who use quick pay, just for the fact they have cash flow available. And will use for the 1st load(s).