GET PAID FAST / WHAT IT COSTS
Freight factoring rates: the percent is half the price
Trucking factoring rates run about 1% to 5% of each invoice. But the rate on the quote is only part of what you pay. Minimums, flat fees and wire charges change the real cost, and they hit small invoices hardest. Below you can price your own setup and a full month of loads.
MONTHLY INVOICES
We refer carriers to a factoring partner and may be paid for referrals.
FEE PER INVOICE SIZE
How much do freight factoring companies charge on your invoices?
Type in the terms from a quote. The bars show the true percent on five invoice sizes, and the month view prices a full month of loads. Defaults are EXAMPLE values, not a quote.
EXAMPLE / WHAT THE SAME SETUP REALLY COSTS, BY INVOICE SIZE
- $6005.00% $30
- $1,2003.42% $41
- $2,0003.25% $65
- $3,0003.17% $95
- $4,5003.11% $140
Red bars cost more than your headline 3% because of the minimum or the flat fee. Short, cheap loads feel it most.
EXAMPLE MONTH
Gross factored $35,200
$1,136
in factoring costs, or 3.23% all in. Times twelve: $13,632 a year.
Once you know the cost per invoice, check that each load still pays after factoring, fuel and dispatch with the load profitability calculator.
TYPICAL RATES
Trucking factoring rates in 2026
Published ranges, with the date we checked them. Anything well outside them deserves a question, whether it looks too high or too good.
- Fee per invoice, overall range
- about 1% to 5%
- Fee most carriers pay
- 1.5% to 4%
- Advance on the invoice
- usually 70% to 95%
- Advertised 100% advance
- often net of fees, or with a reserve
- Same-day wire funding
- often an extra fee
FEE STRUCTURES
Three ways factors price the same invoice
Flat rate
One percent per invoice, however long the broker takes. Simple to budget, and the best fit when some of your brokers pay slowly.
Tiered by days
A lower starting percent that rises at set intervals until the broker pays. Cheap with fast payers, expensive with slow ones. Ask for the full schedule.
Volume tiers
The percent drops as monthly volume grows. Good for growing fleets; check what happens in a slow month if you fall below the tier.
TWO QUOTES, ONE MONTH
The best trucking invoice factoring rates aren't always the lowest
EXAMPLE: two trucking factoring company rates on the same month, 16 dry van loads averaging $2,200. Quote A looks cheaper on paper.
| EXAMPLE | Quote A | Quote B |
|---|---|---|
| Headline rate | 2.5% | 3% |
| Per-invoice fee | $15 | none |
| Wire fee per payment | $20 | none (ACH) |
| Month total | $1,440 | $1,056 |
| All-in percent | 4.09% | 3% |
Quote A's extras add $384 a month, or $4,608 over a year, on exactly the same loads. So how much factoring services cost for trucking comes down to the all-in line, never the headline. Plug any two quotes into the calculator above and the same pattern shows up fast.
READING A RATE QUOTE
Factoring fees in trucking, line by line
A quote that only shows a percent isn't a quote yet. Here is what each line on a complete one means, and what to ask when a line is missing.
- Discount rate
- The headline percent taken from each invoice. Check whether it is flat or rises with days.
- Advance rate
- The share paid up front. The rest is the reserve.
- Reserve release
- When you get the held-back part: per invoice, weekly, or monthly.
- Recourse period
- How long a broker can go unpaid before you must buy the invoice back.
- Other fees
- Per-invoice, ACH, wire, credit check, minimums, fuel advance fees.
- Term and exit
- Contract length, renewal, notice and any termination fee.
HIDDEN FACTORING COSTS CHECKLIST
- Per-invoice or processing fee
- ACH or wire transfer fee
- Minimum fee on small invoices
- Monthly volume minimum
- Credit check or application fee
- Fuel advance fee
- Early termination fee
Ask every factor to price the same real invoice with all of these included. That single number is the only fair way to compare, and it is how we suggest reading the best factoring companies comparison too.
WHAT DRIVES YOUR RATE
Truck factoring rates move with five things
The lowest factoring rates go to carriers who look like low risk and steady work. Here is what a factor weighs when it prices you.
| Factor | Lowers your rate | Raises your rate |
|---|---|---|
| Broker credit | Established brokers who pay on time | Slow or unknown brokers |
| Monthly volume | Steady, higher volume | A few invoices a month |
| Invoice size | Larger invoices; minimums matter less | Many small invoices |
| Recourse | Recourse terms | Non-recourse protection |
| Contract | Longer commitment, all invoices | Short term, pick your loads |
Notice the trade-offs. The cheapest percent often comes with a long contract and every invoice required. A slightly higher rate with freedom to leave or pick loads can cost less over a year, especially if you plan to stop factoring once you have a reserve.
LOWER COST PER LOAD
Bigger invoices shrink the minimums
The bars above make one point clear: small loads pay more in factoring per dollar. Our dispatchers book loads that pay for the miles, check broker credit before booking, and send every rate con to you to sign or turn down. Dispatch is charged on gross, with no setup fee and no minimums.
QUESTIONS
Freight factoring costs, answered
We refer carriers to a factoring partner and may be paid for referrals. Back to all factoring guides.
01What are typical freight factoring rates?
About 1% to 5% of each invoice, with most carriers paying between 1.5% and 4%, according to FreightWaves' February 2026 overview. Advances usually run 70% to 95% of the invoice. Your own rate depends on your brokers' credit, your volume, the recourse terms and the extra fees in the contract.
02What hidden fees do factoring companies charge?
None are hidden if you ask, but they're easy to miss: per-invoice or processing fees, ACH and wire fees, minimum fees per invoice, monthly minimum volume fees, credit check or setup fees, fuel advance fees, and early termination fees. Ask for one all-in example on a real invoice before signing.
03Flat vs tiered factoring fees: which is cheaper?
It depends on how fast your brokers pay. A flat fee charges the same percent whatever the broker's timing. A tiered fee starts lower and rises the longer the broker takes, for example every extra 10 or 15 days. With fast-paying brokers, tiered can be cheaper; with slow ones, flat usually wins.
04Do factoring rates depend on broker credit?
Yes. The factor is buying the broker's promise to pay, so brokers with strong credit and a record of paying on time mean less risk and a lower rate. Many factors will refuse to buy invoices from brokers with weak credit, which also protects you from hauling for them.
05Do volume discounts exist in factoring?
Usually, yes. Factors often quote a lower percent as your monthly invoice volume grows, because the work per dollar falls. A small fleet can often get a better rate than a single truck. Ask what rate applies at your current volume and what it becomes at the next volume tier.
YOUR NUMBERS, NOT AN AVERAGE
See your all-in rate
Three short steps. our factoring partner quotes your volume and brokers, and you compare. We refer carriers to a factoring partner and may be paid for referrals.