COD vs. Factoring vs. Net-30: How Carriers Actually Get Paid

Ask any owner-operator what the worst part of the job is, and it's usually not the driving — it's the waiting to get paid. Here's how carrier payment normally works, what each option really costs, and why getting paid on delivery changes the math.

Net-30 (and net-45): the default that hurts

Most brokers pay on net-30 or net-45 terms — you deliver the load, submit your paperwork, and wait a month or more for the check. Meanwhile fuel, insurance, and truck payments don't wait. For a small carrier, a month-long gap between doing the work and getting paid is a cash-flow squeeze that can force hard choices.

Factoring: getting paid faster, for a cut

To avoid the wait, many carriers use a factoring company — you sell your invoice to them, they pay you most of it within a day or two, and they collect from the broker later. The catch: factoring takes a fee, typically 1–5% of every invoice, forever. On thin margins, that's real money off the top of every single load, just to get paid on time.

Quick-pay: the broker's version

Some brokers offer quick-pay — they'll pay you in a few days instead of 30, but they charge a percentage for the privilege. Same idea as factoring: you're paying to get your own money sooner.

COD: paid in full, on delivery, no cut

The cleanest option is the oldest one: cash on delivery. You drop the load, you get paid your full amount right then — no 30-day wait, no invoice to factor, no percentage skimmed to speed it up. The money you earned is the money you keep.

That's the model Loadgency is built on. The customer pays you the full posted price directly on delivery, and because we never hold your pay, there's no broker to slow-pay you, no factoring fee to eat, and no risk of a broker going under still owing you. Our fee comes from the shipper, separately — never out of your rate. For a carrier, "delivery day is payday" isn't a slogan; it's the difference between chasing money and running your business.