Quick Pay for Truckers
Quick Pay for Truckers
Quick pay for truckers may be a popular option, but it’s far from the best financing option. Enter: invoice factoring.
Getting paid when you need it is incredibly appealing, but not all options are created equal. While many truckers turn to quick pay, it’s simply that, a quick fix. Factoring your invoices offers the same, and often faster, funding on your freight invoices for virtually every broker, bringing consistency, reliability, and a slew of additional features and benefits to your operation. Discover why partnering with a specialized factoring company like Outgo, a DAT product, is a great alternative to quick pay trucking.
- Get the cash you need when you need it, universally.
- Reduce stress and simplify back office workflows.
- Take advantage of additional tools and resources that help your business thrive.
Get the cash you need when you need it, universally.
Eliminate cash flow concerns with fast payments from invoice factoring. 90% of invoices are ready to factor in four hours or less.
With factoring you can get the money you already earned when you want it, without waiting for slow-paying customers to pay up, or limiting yourself to brokers who offer quick pay. You simply sell your invoice to a factoring company, get paid the full value minus a small fee, and let the factoring company bill your customer and wait for payment.
Outgo, a DAT product, offers invoice factoring that helps you take control of your cash flow and expand your network to find better and higher paying freight. Say goodbye to manually creating invoices. Outgo generates them automatically and gets you paid within 4 hours for approved invoices. It’s that simple.
Reduce stress and simplify back office workflows.
The best factoring companies make getting the money you already earned easy, and following up on payments a thing of the past.
Quick pay trucking may seem like a great way to get cash, but it can become complicated and limiting for your business in the long run. With terms and rates that can vary greatly from broker to broker, if they even offer a quick pay option, navigating quick pay for truckers is often a headache.
Luckily, there’s another option. Outgo, a DAT product, is a reliable factoring partner that provides all the benefits of quick pay trucking – and many more – all without the headache. With no restrictive contracts, monthly minimum requirements, or hidden fees, factoring your invoices and getting paid fast is easy with Outgo, a DAT product. Simply use Outgo’s intuitive web, iOS, or Android apps to submit your invoice and let them do the rest. You can even track the status of your payments so you always know exactly when your cash will hit your account!
Take advantage of additional tools and resources that help your business thrive.
With Outgo, a DAT product, get dedicated back-office support and automated invoicing to keep your operations running smooth.
Anyone who works in trucking knows that time is money, and relationships are everything. The more time you have to spend tracking down slow-paying customers and navigating back-office tasks, the less time you’ll have to spend expanding your network, building relationships, and finding new freight.
The good news is that when you partner with a leading freight factoring company like Outgo, a DAT product, you don’t just get your money fast, you also get back your time. That’s because they take on all invoice-related back-office duties, leaving you free to focus on growing your business instead of on tracking down the money you already earned.
As the name implies, quick pay trucking is a way for carriers and owner-operators to get paid for their work more quickly. Shippers and brokers are famously slow when it comes to paying invoices. While this obviously isn’t true of every individual shipper or broker, without an expedited payment option you can be stuck waiting 30, 60, or even 90 days to get paid for the work you already completed.
To avoid that, quick pay truckers choose to pay the broker a percentage of the total load invoice in return for faster invoice payment that usually arrives between two and five days after a delivery is completed.
While it may sound like a great solution to the problem of slow-paying customers, quick pay trucking isn’t always the best solution – or even an option. Many brokers don’t offer a quick pay program in the first place, which means your business is limited when it comes to finding freight and making new relationships with customers. Those that do often set unfavorable terms and conditions for their quick pay program, with some major brokers charging as high as 5% of the invoice amount for funding in 48 hours.
Invoice factoring, also called freight factoring, freight bill factoring, or simply factoring, is a better solution. It offers all the advantages of quick pay trucking, plus many more. With factoring you can get paid within 4 hours of submitting an invoice and avoid having to track down your slow-paying brokers or shippers with non-recourse factoring like what’s offered by Outgo, a DAT product.
Freight factoring, also known as invoice factoring, allows carriers to receive speedy payments on their completed loads and acts as a centralized source for all brokers and loads hauled. Instead of waiting anywhere from 30 to 90 days to get paid for the work they already completed, carriers and owner-operators can sell their invoices to factoring companies who will pay them the full amount of the invoice (minus a small percentage) within 24 hours. Some modern factoring companies provide funding within 4 hours for approved invoices, and sometimes in just minutes. That gives truckers access to the cash they need when they need it without having to take on debts or agree to unfavorable quick pay trucking terms.
While there are many different freight factoring companies to choose from, they aren’t all created equal. The best factoring companies, like Outgo, a DAT product, provide simple factoring with no long-term contracts, minimums, or hidden fees. Outgo even offers ways for customers to drop their factoring rate to just 1.0%.
There are several key differences to note between quick pay trucking and invoice factoring.
One major difference is that quick pay is load by load, and broker by broker where freight invoice factoring is a universal solution for your entire operation and customer base. Since quick pay is a one off engagement it does not offer trucking operations the centralized back-office benefits, credit protection, or reliability that you get when you factor with a top company.
Another is that relying on quick pay can seriously limit your business opportunities. That’s because many brokers don’t offer quick pay in the first place, or charge drastically higher fees for the advance. If you choose to only operate with brokers who offer quick pay, you are severely restricting your business’s ability to operate in a profitable manner, and even if most of the brokers you operate with offer quick pay, you’ll find they usually pay less per mile than non-quick pay loads. Fewer potential brokers means fewer options for freight. That translates into more unpaid miles between loads, more days parked waiting for freight, and a reduced ability to find better paying freight or negotiate for higher rates.
And that’s not all. Because quick pay operates on a per-invoice model, brokers can vary their fees greatly – or even suddenly stop offering quick pay entirely – based on the current state of the market. In short, when linehaul rates or interest rates make advancing payment too costly, brokers have the freedom to simply stop offering it, potentially leaving quick pay truckers in a lurch.
Outgo, a DAT product, offers low, transparent factoring rates with no hidden fees or minimums. Plus, because Outgo is part of DAT, you can see broker factoring eligibility so you can factor right from your load board before you begin negotiations. That way you can take control of your cash flow from the get-go.
While it’s true that factoring and quick pay are very similar when it comes to paying you for your invoices fast, when you consider the best ways to operate your business, factoring is a better alternative to quick pay trucking. That’s because, in addition to offering back-office benefits, credit protection, and greater reliability when compared to quick pay, factoring is also far more prevalent across the industry. The result is that it’s much easier to find freight you can factor than to find brokers who offer quick pay. If you do choose to work exclusively with brokers who offer quick pay, you’ll have fewer freight options to choose from, which will likely mean more deadheading, less time on the road, and fewer opportunities to negotiate higher rates, not to mention less money in your pocket! Plus you’ll be at the whim of freight brokers who regularly change their rates – or even stop offering quick pay altogether – based on changing market conditions and interest rates.
When you factor with a quality partner, you’ll get the same benefits as quick pay when it comes to fast invoice payment, but without the cost of limiting your potential business opportunities.
At DAT, we’re always looking for ways to help trucking businesses thrive. As part of that mission, DAT has acquired Outgo and its industry-leading funding speeds to create the most trusted freight factoring company in the business. With Outgo, a DAT product, we ensure our members can get the cash they need when they need it without any long-term contracts, minimums, or hidden fees.
Thanks to this integration, DAT users can now see which loads are posted by brokers who are pre-approved for factoring with Outgo, right from the DAT One Load Board. That means you can plan ahead with confidence, knowing you’ll be able to factor every load you want to, and none of the ones you don’t.
With more than 644,500 new loads posted to the industry-leading DAT One Load Board each business day, there are always new loads to discover from brokers pre-approved for factoring with Outgo.
Outgo has built its reputation on being transparent, fast, and fair to carriers. With no hidden fees, long-term contracts, or factoring minimums, you get the freedom to factor on your terms. Plus, it offers non-recourse factoring so you can factor with the confidence of knowing you won’t be on the hook for a slow-paying – or even non-paying – customer.
With Outgo, a DAT product, you can get the full value of your invoice (minus a small fee) within 4 hours for approved invoices. You can also get paid through ACH or wire transfer. Plus, by taking your invoice off your hands, you reduce your back-office tasks so you’re free to pursue new business opportunities instead of chasing down payments from old ones.
And that’s not all. Thanks to Outgo now being part of DAT, you can see exactly which brokers are pre-approved for factoring, making it easier to choose the best freight opportunities right on the load board.
Start factoring today with Outgo, a DAT product!
While quick pay may be popular with truckers, there’s no doubt that our factoring solutions beat even the best quick pay brokers. With funding in as fast as 15 minutes or less, no hidden fees, and automated invoicing, Outgo is the best way to get your invoices paid fast. Quit quick pay and start factoring with Outgo, a DAT product!
Outgo, a DAT product
- Invoices approved within 4 hours
- Low, transparent rates (no hidden fees)
- No annual contracts, no reserves