Guide
Quick pay fee math: what the percent really costs per day
A 2% fee sounds small. Taken on a Friday to dodge a 45 day wait, it can be cheap. Taken every week on 30 day loads, it is not.
In short
- Quick pay is an early-payment option some brokers offer for a fee. The fee is taken out of the invoice.
- Compare options by cost per day early, not by the percent alone.
- Formula: fee / cash received x 365 / days early gives a simple yearly rate. It is a comparison tool, not a quote.
- We name no brokers and quote no market fees. Use the terms in your own paperwork.
Percent tells you little. Days tell you more.
Two quick pay offers can carry the same percent and cost very different amounts. The fee buys time. If it buys 42 days, it is spread over a lot more time than a fee that buys 7.
The figure shows the idea. Days early is the span between the quick pay date and the normal pay date. The fee sits at the start and buys that span. Divide the fee by the cash you receive, then scale it to a year, and you can put it next to a credit line or a factor.
Our pay or wait tool does this on your numbers, and the factoring vs quick pay page sets the two side by side.
Work it out in five steps
Get the exact fee
Ask the broker for the fee in writing, and whether it changes with how fast you want the cash.
Fix the dates
Write the normal pay date from the rate con and the date quick pay would arrive.
Count days early
Subtract the quick pay date from the normal pay date.
Compute the rate
Fee divided by cash received, times 365, divided by days early.
Compare to what else you have
A credit line, a card balance or a late payment fee. Pick the cheapest that you can actually get this week.
Three invented offers, same method
| Offer | Fee | Cash received | Days early | Simple yearly rate |
|---|---|---|---|---|
| 2% on $2,400 | $48 | $2,352 | 42 days | 17.7% |
| 3% on $3,000 | $90 | $2,910 | 25 days | 45.2% |
| 4% on $2,400 | $96 | $2,304 | 28 days | 54.3% |
Worked example EXAMPLE VALUES
Example data. An invoice of $2,400, a 2% quick pay fee and a normal pay day of day 45. Quick pay lands on day 3.
| Step | Result |
|---|---|
| Fee, 2% of $2,400 | $48 |
| Cash received | $2,352 |
| Days early (45 minus 3) | 42 |
| Fee / cash received | 2.04% |
| Simple yearly rate | 17.7% |
Now the same 2% on a load that normally pays in 15 days and lands on day 3: 12 days early, and the same fee is a much bigger yearly rate. That is why a percent alone cannot decide it. A simple yearly rate also ignores compounding and any extra terms, so treat it as a ruler.
Where the math goes wrong
- Comparing percents. 2% on 42 days early and 2% on 12 days early are different deals. Always count the days.
- Forgetting the cash received. The fee is taken from the invoice, so divide by what you receive, not by the invoice total.
- Using it as a habit. Small fees every week add up. Total them by month, so you see the sum and not the single charge.
- Ignoring dispute rules. Ask how a short pay or detention line is treated once the invoice is paid early.
Copy and fill in
Keep it factual and short. Save the reply with the load file.
Check what else changes
Ask whether quick pay changes how detention, lumper or short pay disputes are handled on that load. Some brokers treat them differently. Confirm it in writing. We do not know your broker's terms, so we do not assume any.
We do not give legal, tax or financial advice. Your contracts come first.
Questions
Is quick pay the same as factoring?
No. Quick pay is offered by the broker on its own invoice. A factor is a third party that buys invoices. See factoring vs direct billing.
Why use a yearly rate for a single invoice?
It makes different offers comparable. You will not pay it for a year. It is a ruler for fee per day early.
Can the broker change the fee later?
Possibly. Read the terms or the agreement you accepted, and save a copy of the fee schedule.
When is quick pay worth it?
When the cash lets you avoid something costlier, such as a late payment or a missed fuel stop. Price that with your own numbers.
Related: factoring vs quick pay, factoring cost calculator, broker payment delay, 13 week cash flow, brokers who pay late, all guides.
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