Digital freight network Convoy announced Thursday it has reduced its quick pay services time frame down to eight hours.
Previously, Convoy’s carrier network could have access to funds within 48 hours with no fee since 2016.
Now those that utilize its quick pay service can get payments transferred directly to their bank accounts the same day within eight hours, depending on their banking providers, with a 1.5% transaction fee, or within the standard 48 hours for free.
Fees from factoring companies and other quick pay service providers average 4%, according to Convoy. The company said 75% of its shipments each month are handled through its quick pay program.
“One of the evergreen problems that small carriers face is cash flow and the ability to get paid quickly to be able to fund expenses like fuel and maintenance,” said Grant Goodale, co-founder and carrier experience officer at Convoy. “Now inflation has spiked aggressively, you have rising fuel costs as well and we recognize that sometimes two days or longer may still be too long to wait.”
The product solution works simply within the load process. Carriers select a driver to fulfill a load and that driver turns on his or her location services for the Convoy app through the duration of the trip. Once the driver has delivered the load and necessary documents are uploaded, carriers will be offered the quick pay service and can select same-day or two-day payment.
There is no minimum or maximum rate attached to the new quick pay service.
Truck Driver Appreciation Week discount
Goodale told FreightWaves that all loads booked during National Truck Driver Appreciation Week, which begins Monday and continues through Sept. 16, with the 1.5% eight-hour quick pay fee will be offered to Convoy carriers free of charge.
“These services pay for themselves. … We view this as a way to increase carrier loyalty, which will lead to better service to shippers as these retained carriers continue to learn about their facilities, the routes and procedures for specific loads. The shipment process improves for the carrier, the shipper and Convoy because everyone is more empowered to be more successful by having their specific needs met,” said Goodale.
Watch now: What does the future of Convoy look like?
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