Factoring rates
Freight factoring rates: what the quote says, and what you actually pay
Published freight factoring rates typically run 1.5% to 5% per invoice, according to one factoring cooperative's own pricing guide. The rate on the quote is only part of the cost, though. Wire fees, tiers, minimums and terms decide your real number. Decode an EXAMPLE quote below, then get a written one to compare.
How much do freight factoring companies charge? Decode a quote line by line
This is an EXAMPLE quote with the kinds of lines real quotes carry. Tap each line for what it means in plain words, then set your month: how many invoices, how big, how fast your brokers pay. The effective rate is the number to compare between companies.
EXAMPLE factoring quote · tap a line
You get 90% of each invoice when it's approved. The other 10% is the reserve, held until the broker pays.
What this quote costs your month
- Factored
- $20,000
- Discount at 3.0%
- -$600
- 8 wires x $15
- -$120
- All-in cost
- $720
- Effective rate
- 3.60%
The quote says 2.5%. Your effective rate is what you actually pay. Try 20 small invoices of $600 to see flat fees bite.
Notice what happens with many small invoices. A $15 wire on a $600 load adds 2.5 points by itself. Carriers who run several short loads a day, like local box truck or dump work, often save more by batching uploads than by haggling the headline rate.
Trucking factoring rates and fees: published ranges
Few factors publish prices. One that does is a member-owned factoring cooperative, and its 2026 pricing guide lists these ranges. Treat them as a benchmark, not a promise; your quote depends on your customers, volume and terms.
| Cost line | Published range |
|---|---|
| Factoring rate per invoice | 1.5% to 5% per invoice |
| Non-recourse premium | 0.5% to 1.5% more per invoice than recourse |
| Setup fee | $100 to $500 |
| Monthly minimum | often $5,000 to $10,000 in factored volume |
| Wire fee | $10 to $35 per funding transaction |
| Early termination fee | $500 to $2,500 |
RTS Financial, the factor we refer to, doesn't publish a rate on its factoring page; it says rates are estimates until full underwriting; RTS quotes through its own rate calculator.
Source: Transport Clearings East, freight factoring costs · checked 2026-10
What drives truck factoring rates up or down
- 01
Your customers' credit
The factor is betting the broker pays. Strong, fast-paying brokers mean less risk and a lower rate. A customer list full of slow payers costs more, or gets declined.
- 02
Monthly volume
More factored dollars usually earn a lower percentage. A one-truck operation pays more per invoice than a ten-truck fleet.
- 03
Invoice size
Flat per-wire or per-invoice charges weigh heavier on small invoices. Ten $500 loads cost more to factor than one $5,000 load at the same rate.
- 04
Days to pay
On tiered pricing, every extra 10 or 15 days a broker takes adds to the fee.
- 05
Recourse or non-recourse
Non-recourse shifts some non-payment risk to the factor, and costs more for it: 0.5% to 1.5% more per invoice than recourse in the published guide above.
- 06
Contract length
Longer commitments sometimes buy a lower rate. Weigh that against what it costs to leave.
More loads at better rates beat a lower factoring fee
No setup fee. Month-to-month. You confirm every load.
Load offer · Example
1 of 3
Dallas, TX to Memphis, TN
53 ft dry van · Live load, drop and hook at delivery
- Loaded
- 452 mi
- Deadhead
- 18 mi
- Rate
- $2.32/mi
- Gross
- $1,050
- Dispatch fee 5%
- -$53
- You keep
- +$997
Every load comes to you like this. You confirm or pass, and the rate con goes straight to you.
Factoring fees in trucking that hide below the rate
Ask for the full fee schedule in writing. These are the lines that turn a cheap headline rate into an expensive month.
Ask about each one
- Setup or application fee
- Per-invoice processing fee
- Wire, ACH or same-day funding fee
- Monthly minimum and the shortfall charge
- Monthly service or account fee
- Credit check fees on brokers
- Fuel advance fees
- Early termination fee and notice window
Red flags in a quote
- A rate with no fee schedule attached
- Tiers that keep rising with no cap
- Auto-renewal with a short notice window
- Reserve released only in a monthly batch
How to get the lowest factoring rates you qualify for
- 01
Haul for brokers who pay
Your customer list is your credit score in factoring. Check broker credit before you book, and drop chronic slow payers.
- 02
Batch your uploads
If you pay per wire, upload a day's or a week's paperwork together when you can afford the wait.
- 03
Pick recourse if your brokers are solid
If you haul mostly for well-rated brokers, the non-recourse premium may buy little real protection. Read what it covers first.
- 04
Get two written quotes
Run both through the decoder above with your real month. Then ask the higher one to match the lower.
- 05
Send clean paperwork
Matching rate con, BOL, POD and invoice means fewer holds, faster pay and no disputes that stretch days to pay.
Comparing companies, not just rates? See our factoring company comparison.
Freight factoring cost questions
Flat vs tiered factoring fees: which is cheaper?
It depends on how fast your brokers pay. A flat fee costs the same whether the broker pays on day 15 or day 60. A tiered fee starts lower but climbs as payment slows. If your brokers pay quickly, tiered can win. If several pay in 45 days or more, flat is often cheaper. Run both in the decoder above.
What hidden fees do factoring companies charge?
Common extras include setup fees, per-invoice or wire fees, monthly minimums with shortfall charges, service fees, fuel advance fees and early termination fees. One factor's published guide lists wire fees of $10 to $35 per funding transaction and termination fees of $500 to $2,500. Ask for every line in writing before you sign.
Is non-recourse factoring more expensive?
Usually, yes. The factor takes on some risk that a customer never pays, and prices that in. One published guide puts the premium at 0.5% to 1.5% more per invoice than recourse. Check exactly which cases are covered; non-recourse often covers only a customer's insolvency, not disputes. More in non-recourse factoring.
Do factoring rates depend on broker credit?
Yes, heavily. The factor gets paid by your broker, not by you, so a customer list of well-rated, fast-paying brokers earns a better rate. Many factors check broker credit before you haul and may refuse to buy invoices from brokers they don't approve.
What are typical freight factoring rates?
One factoring cooperative's 2026 pricing guide says freight factoring costs 1.5% to 5% per invoice. Small carriers with low volume tend to pay toward the higher end. Your effective rate, after wires, tiers and minimums, is the number to compare.
We refer carriers to RTS Financial and may be paid for referrals. It doesn't change your rate. Disclosure.
Get a real quote to run through the decoder
Referral to RTS Financial. We may be paid for referrals.