Question about a Quick Pay option

ShawnR

Site Supporter
#1
at what percentage would you consider taking a quickpay option?
quick pay refers to being paid in 24hrs with direct deposit into you account.
 

chica123

Site Supporter
#2
I, personally would not ever consider quick pay. I can't afford to take a single penny out of the bottom line, and I believe many others out there are in the same boat. I look for a balance of brokers/customers that pay in a timely fashion, have decent loads, and are easy to work with. That is just our business model, GRoch. Others will give different input. :)
 

EricG

Site Supporter
#3
Quick Pay... lol....

as a carrier we just stick with brokers or direct clients that pay within 30 days... we have over 3500 active daily/weekly clients that meet 30 days.... plenty of companies are capable of 30 days.. so why even consider taking on someone that wants to remit in 45+ days... its just not worth tied up capacity for people who won't pay on-time. We delivery on-time and expect and demand to get paid on time. Worked for us for 35+ years....

If anyone tells us they want longer than 30 days.. its called pay me now.. up front with a credit card.... most companies understand that option and don't balk at it.

We are a trucking and courier company... NOT A BANK... your bank provides your line of credit, or operating loans.... not A&B Courier.

And if your business finances require quick pay.... then maybe your not liquid enough to keep afloat in this industry.



and to quote Chica123... " That is just our business model, GRoch. Others will give different input. :)"
 

ShawnR

Site Supporter
#4
we clear out everything we owe every 2 weeks so it averages 14-21 days to pay, but sometimes guys want to be paid in 24hrs. So we're looking to see where the sweet spot is for people to be happy about getting paid faster and be willing to give back a certain amount to make it happen.

p.s. the quick pay thing is a lot of work to setup too for the person paying the bill
 

Michael Ludwig

Well-Known Member
#5
@G Roch ... Like the others, I don't utilize quick pay either. Our standard terms are 21 days if you qualify for credit, otherwise, cash. However, I see where you are coming from ... there are small carriers and independent operators that would take advantage of a quick pay option as opposed to having to finance their operations through a bank or credit card. I suspect if you can land somewhere between the 1% and 2% mark that would be acceptable. That would be about what it would cost them to take a Visa, MasterCard, or Amex card via the "Square One" on their cell phone.

From your end, the only way quick pay can work effectively is if your subscribers are on EFT which isn't that complicated to set up. It only becomes problematic when you are paying back and forth across the U.S. border.
 

ShawnR

Site Supporter
#6
yeah the quickpay is direct deposit for Canadian carriers only, so they literally get paid within 24hrs, not a check sent out within 24hrs
 

Michael Ludwig

Well-Known Member
#7
That's a pretty fair bargain.
About the only way you could do that with U.S. carriers would be to work with either TD Bank or RBC as they both have direct affiliates on the other side of the creek. TD would be the best choice since they have already been doing this for years.
 

MikeJr

Moderator
Staff member
#8
We find TD does wire transfer within 24 hours to the US.
Scotiabank... We're still waiting for the one from 2013 to go through!!

Keep well,
Mike
 
#11
I think that our company does 3% for CAD fund loads and 4% for USD fund loads.
So if the order was $1000CAD/$1000USD the carrier would be paid 700CAD/600USD. But I'm in dispatch, not accounting so don't quote me on this.
 
#13
Why the difference between CDN and USD, and unless my math is wrong, that's 30% and 40% respectively.
I'm not sure WHY they do the difference. I never really asked, I just know that the cost is different for ComCheck Vs. QuickPay.

And yes, MY math was off, I subtracted too many "zeros" Should've been -$30 and -$40, not $300/$400.
 

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