LuvireMedia Newsletter
Stop waiting 30 days to get paid. Learn how factoring and QuickPay can
fuel your logistics business, plus the hidden costs you need to watch out
for.
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In the logistics game, momentum is everything. Waiting 30,
60, or even 90 days for a broker to pay an invoice can
stall your growth and put immense pressure on your daily
operations. You need cash
now
for fuel, maintenance, and driver payroll.
Enter
QuickPay
and
Freight Factoring
. By selling your outstanding invoices to a factoring
company for a small fee (typically 2-5%), you unlock
immediate capital. It transforms a waiting game into
instant liquidity, keeping your trucks moving and giving
your scaling business the financial oxygen it needs to
thrive.
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The Hidden Costs
Not all factoring contracts are created equal. Before you
sign over your receivables, you need to understand the
fundamental difference between the two main types of
factoring:
Recourse Factoring
Offers lower fees, but you carry the ultimate
risk. If your broker or shipper fails to pay the
invoice,
you are responsible
for buying that invoice back from the factoring
company.
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Non-Recourse Factoring
Comes with slightly higher fees, but the
factoring company assumes the risk of
non-payment if the broker becomes insolvent or
goes bankrupt.
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Georgia Owners: Read the Fine Print
"Non-recourse" does not mean unconditional
protection. In Georgia, factoring
contracts rarely cover unpaid invoices
resulting from
disputes, damaged freight, or breach of
contract
. Always verify exactly what "non-payment"
covers before signing the dotted line.
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