Freight Factoring vs. Quick PayFreight factoring, as most of you know, is an option to get paid for your invoices now, rather than later. Most factoring companies provide payment within 24-48 hours, but it does come at a price. The percentage of what the factoring company gets to take off the top is what you really need to pay close attention to. Percentage rates vary among factoring companies, so really the best way to choose one is to talk to someone that has done factoring and get their take on it.
Quick Pay is an option provided by freight brokers and usually offers comparable rates to factoring companies. If you work mainly with a broker, then it can be more convenient to use this option to receive payment faster. Again, pay attention to the percentages that they take off the top, and remember the faster you want payment, the higher the percentage.
The differences start to become apparent in the additional fees and services. Also, a big difference can be seen in how you receive your payment - via card, check, or direct deposit. With quick pay, you might not have as many additional fees as you would if you used a factoring company. But factoring companies do offer more additional services such as fuel advances and special discounts.
From countless hours of research and a deep fall down the quick pay/factoring rabbit hole, it's difficult to determine if one is actually better than the other. Both options have their pros and cons and neither is a 'loan' so you never have to pay anything back later. It really comes down to what option is available to you and how much money you're willing to part with.