ENTRY 01 / FACTORING RATES AND FEES
Freight factoring rates: the percentage, every fee behind it, and the yearly bill
Freight factoring rates usually run 2% to 5% of each invoice, according to DAT. That percentage is what quotes lead with. What you really pay also includes transfer fees, invoice fees, same-day charges and minimums, and for a one-truck business it adds up to thousands of dollars a year. This page puts every fee in one stack so you can see the real number before you sign.
By Daniel. Updated October 2026.
- 2-5% typical
- 75-90% advanced
- Source: DAT
ENTRY 02 / WHAT DRIVES YOUR RATE
Why two trucks can get two different trucking factoring rates
A factor prices the risk and the work of buying your invoices. Four things move that price the most.
Your brokers' credit
The factor collects from your brokers, not from you. Invoices from brokers that pay reliably are cheaper to buy, and a factor may refuse brokers with a poor record.
Monthly volume
More invoices from one carrier means more fee income for similar effort, so higher volume usually earns a lower rate. One truck sits at the higher end of most rate sheets.
Invoice size
A $600 invoice costs a factor almost as much to verify and collect as a $3,000 one. Carriers with many small invoices, like short regional runs, often see higher rates or per-invoice fees.
Recourse and contract length
Non-recourse usually costs more because the factor carries more risk. A longer contract can buy a lower rate, but you give up the freedom to leave.
ENTRY 03 / FEE STACK
How much do freight factoring companies charge? Stack every fee and see.
Start with the EXAMPLE quote below, then type in the numbers from yours. Switch on each fee the quote mentions. The bar shows where the money goes, and the real rate shows what all of it adds up to as a share of your gross.
YOUR QUOTE · EDIT ANY NUMBER
FACTORING COST ON $24,000 A MONTH · EXAMPLE UNTIL YOU EDIT
| Discount fee | $720.00 |
|---|---|
| ACH transfers | $20.00 |
MONTH
$740
YEAR
$8,880
REAL RATE
3.08%
With a 90% advance, about $2,800 of your money sits in reserve at any time while brokers take 35 days to pay.
Read the yearly number twice. A 3% rate on $24,000 a month is $8,640 a year before any other fee. That is more than many owners spend on tires. It may be worth it, but it should be a decision, not a surprise.
Put it in your cost per mile. Divide the monthly cost by the miles you run in a month and add it to your operating cost. The trucking profit calculator shows what that does to your take-home.
SOURCE: DAT OUTGO, UNDERSTAND THE COST OF FACTORING, OCT 2026
Two quotes for one truck: the lower rate costs more
An EXAMPLE one-truck owner factors ten invoices a month, about $24,000, and brokers take 45 days on average. Two factors quote, both invented for this example.
QUOTE A · 2.5% TIERED · EXAMPLE
| Discount, 2.5% + 0.5% after day 30 | $720.00 |
|---|---|
| ACH, 4 x $10 | $40.00 |
| Invoice fees, 10 x $5 | $50.00 |
| Per month / year | $810.00 / $9,720 |
| Real rate | 3.38% |
QUOTE B · 3% FLAT · EXAMPLE
| Discount, 3% flat | $720.00 |
|---|---|
| Transfers | Included |
| Invoice fees | None |
| Per month / year | $720.00 / $8,640 |
| Real rate | 3.00% |
Quote A leads with the lower number and costs $1,080 more a year, because the brokers are slow and the small fees add up. With brokers that paid in 25 days, Quote A would cost $690 a month and win. The right answer depends on your brokers, which is why the fee stack asks for your real numbers.
ENTRY 04 / HIDDEN FEES
The fees to ask about before you compare any two quotes
Every one of these is legal and common, and none of them are hidden if you ask. Send this list to each factor you are considering and ask for a written yes or no, with the amount, next to every line.
A factor that answers every line in writing is easier to trust than one that says "no hidden fees" and leaves the list blank.
- ACH fee. Per transfer. Up to about $10 (DAT Outgo).
- Wire fee. Per wire. Up to about $30 (DAT Outgo).
- Invoice processing fee. Per invoice. Up to $5 (DAT Outgo).
- Same-day funding fee. Charged on some accounts when you want money today instead of tomorrow.
- Monthly minimum. A fee, or a higher rate, when you factor less than a set amount.
- Tiered fee. The rate rises every 10, 15 or 30 days a broker takes to pay.
- Setup, credit check or application fee. Charged once, up front.
- Termination or early exit fee. Charged when you leave before the term ends.
- Check cashing or paper check fee. Up to $15 (DAT Outgo).
ENTRY 05 / HOW TO GET A LOWER RATE
Five honest ways to pay less for factoring
- 1
Get at least two quotes on the same numbers
Same monthly volume, same invoice size, same brokers. Then compare the yearly total from the fee stack, not the headline rate. Our guide to comparing factoring companies lists factors that publish their terms.
- 2
Haul for brokers with strong credit
Ask the factor which of your brokers it rates well. Building your lanes around reliable payers lowers the factor's risk and gives you a reason to ask for a better rate.
- 3
Choose recourse if you can carry the risk
Recourse usually costs less. If your brokers are well rated and you keep a small reserve, the cheaper rate can be worth the risk of buying back the rare unpaid invoice.
- 4
Factor only what you need
If your contract allows it, factor only slow-paying brokers and wait on the fast ones. Fewer invoices factored means less fee, at the same rate.
- 5
Ask again when your volume grows
A second truck or a year of clean history changes what you are worth to a factor. Ask for a review rather than waiting to be offered one.
Ready to see a real number? A factoring quote takes about a minute, and you can run it through the fee stack above. To shortlist other factors, see how to compare factoring companies. Some factors publish a ceiling on their rate; Bobtail, for example, publishes a maximum of 3.24% on its site as of October 2026.
Factoring questions
Q01Do volume discounts exist in factoring?
Yes. Most factors price partly on monthly volume, because more invoices from the same carrier cost them less to handle per dollar. A fleet factoring $80,000 a month usually gets a better rate than one truck factoring $20,000. Some factors also tie the discount to a minimum volume, so check what happens in a slow month.
Q02Do factoring rates depend on broker credit?
Yes. The factor is buying the broker's promise to pay, so brokers with strong payment records cost the factor less risk. Hauling mostly for well-rated brokers supports a lower rate, especially under non-recourse. Factors may refuse invoices from brokers with poor credit, or only buy them with recourse.
Q03What is an ACH or wire fee in factoring?
It is a charge for sending your money. ACH transfers usually arrive next business day and can cost up to about $10 each; wires can arrive the same day and can cost up to about $30, according to DAT Outgo. Some factors include transfers in the rate. Count how many you will send in a month.
Q04Flat vs tiered factoring fees: which is cheaper?
It depends on how fast your brokers pay. A flat fee costs the same whether a broker pays in 10 days or 60. A tiered fee starts lower but rises the longer an invoice stays open. If your brokers pay quickly, tiered can be cheaper; if many pay slowly, flat is usually easier to budget.
Q05What hidden fees do factoring companies charge?
The common ones are ACH and wire fees, per-invoice processing fees, fees for same-day funding, monthly minimums, credit check or setup fees, and termination fees. None of them are hidden if you ask for a complete written list before you sign, and that list is the only way to compare quotes fairly.
We refer carriers to our factoring partner and may be paid for referrals. It never changes your rate. Disclosure.
By Daniel
UPDATED OCTOBER 2026