Quickpay? But it's MY MONEY???? Accounts receivable accounting.

mndriver

curmudgeon extraordinare
Supporter
I hear a lot of folks get tissy about giving a discount for quickpay or even factoring. I won't factor, but I will accept quickpays. The really good ones I have received are a 2% discount in 24 hours. the BEST I have received was 2% for 48 hours, but they sent me notice at 3PM after turning in my POD at 7am that same day. Check was direct deposited the next day. I was impressed.

Anywhoo. Quickpay is nothing new to trucking business. It's rather common in the business world. More commonly referred to as a "discount". You agree to pay early at a discounted amount. Commonly referenced like "Net-2% 3 days". Some places will note it as 2/10 Net 20 or some form meaning 2% discount if paid in 10 days or net in 20 days.
http://www.accountingtools.com/credit-terms-cost-of-credit

invoice discounting.
http://www.accountingtools.com/questions-and-answers/what-is-invoice-discounting.html
You basically are making your cashflow move quickly, but you are financing your Accounts receivables through another company. The terms of that financing I haven't found to be the most favorable to the carrier.

Factoring
http://www.accountingtools.com/factoring-arrangements
similar to invoice discounting, but at a much high cost and rate.

It will make a difference in your accounts receivables how you look at all this. All of them are expensive.
http://www.accountingtools.com/accounts-receivable-accounting
 
no matter how you cut it, you still giving a way money. there also is usually a stipulation that if an invoice isn't paid by a certain date the invoice goes up by a certain percentage also.
 

mndriver

curmudgeon extraordinare
Supporter
I never said you weren't wasting money. I am only attempting to show this isn't something unique to trucking. It is a tool recognized by accountants with methods already established to cover them in the books.

And you are correct, take too long to pay, you can add a premium. Others would call it interest.
 

BigBadBill

Member
Accounts Receivable financing is used in all industries and isn't unique to transportation. What is fairly unique in our industry is the selling of receivables insurance at extremely high rates. We call it non-recourse. For double the cost you can get almost no coverage but feel good about that security.
 

Rigjockey

In Gord we trust!
Supporter
Try that in a restaurant. Yes the service was fine . However i am willing to pay you a percentage up front. If you want to claim all the costs of the food, Service and tip, I will be back in a month and pony up.
 

masterchief

Active Member
You are right, I do stand by my previous statements but I agree this thread was not the place to get into QP vs factoring. I subsequently deleted my posts in order to focus more on the resources you provided. I must say that I very much respect your experience in this industry and would love to have that discussion more thoroughly with you sometime (sorry on an iPhone :) and trust me I'm not trying to sell you, but moreso provide you with resources (links, articles ... Again no correlation to my company) about the disadvantages of QP. I'm a very firm believer in how much QP has negatively impacted this industry and would love to see that regulated as a priority before brokers disclose their margins. Always will stand by that.
 

Injun

Rabid Squaw
Staff member
Supporter
You are right, I do stand by my previous statements but I agree this thread was not the place to get into QP vs factoring. I subsequently deleted my posts in order to focus more on the resources you provided. I must say that I very much respect your experience in this industry and would love to have that discussion more thoroughly with you sometime (sorry on an iPhone :) and trust me I'm not trying to sell you, but moreso provide you with resources (links, articles ... Again no correlation to my company) about the disadvantages of QP. I'm a very firm believer in how much QP has negatively impacted this industry and would love to see that regulated as a priority before brokers disclose their margins. Always will stand by that.
I undeleted your posts and moved the discussion here:
https://www.truckersforum.net/forum/threads/quickpay-vs-factoring.82782/

Seeing both sides of the coin is important. Both you and @mndriver make some excellent points.
 
Okay let me clear this up. When you take a Quickpay, the broker has you flagged in their system as such so they know that they can sell you a load for much less than a non quick account because they view you as "cash dependent". I have been factoring with RTS financial for about 3 years now and like their customer service. I no longer worry about the collecting and billing and only pay 3% flat fee to get my cash within 24 hours. They also give me access to their sister companies loadboard. I encourage ya'll to look at their google ratings and google reviews and i can guarantee you that your experience with them would be as pleasant as mine has been.
 
Last edited:

Ontario Outlaw

Hozer Witta Hood
Okay let me clear this up. When you take a Quickpay, the broker has you flagged in their system as such so they know that they can sell you a load for much less than a non quick account because they view you as "cash dependent". I have been factoring with RTS financial and have really enjoyed it. I no longer worry about the collecting and billing and only pay 3% flat fee to get my number within 24 hours. They also give me access to their sister companies loadboard. I encourage ya'll to look at their google ratings and google reviews and i can guarantee you that your experience with them would be as pleasant as mine has been.
Why do you choose to use a factoring service at all?
 

tommyh

Well-Known Member
I tried going without a factoring company
before I knew it,those brokers was 30-90 days behind paying those bills.It was hurting me.I went with a factoring company and let those people deal with those brokers.I used to use quickpay a lot with certain people.I can do credit checks with this factoring company.That comes in handy.
since I started this new gig,the company pays me every Friday..Soon,I will leave the factoring company since I have no more use for them
 

mndriver

curmudgeon extraordinare
Supporter
That's called managing your cash flow. You'll notice I said "avoid." Even financing your business in a credit card is cheaper than factoring.
Pretty easy to spout when you're under the protection of a lease that pays you in 15 days or less.
 

ironpony

Professional Pot-Stirrer
Supporter
Pretty easy to spout when you're under the protection of a lease that pays you in 15 days or less.
Who dat??
 
Top