DOCK 01RATES
Freight factoring rates: what you will really pay each month
The rate on the quote is only the start. Freight factoring rates depend on your volume, your brokers and the fee structure, and the extra fees on the schedule can add more than you expect. Run your own numbers below, then check any quote against the list of hidden fees.
DOCK 02CALCULATOR
Trucking factoring calculator
Enter a normal month. Switch between flat and tiered pricing, add transfer fees, and see your total freight factoring costs, what you keep and the true cost per invoice.
YOUR MONTH
- YOU KEEP
- $19,340
- TOTAL COST
- $660
- FACTORING FEE (3.00%)
- $600
- TRANSFER FEES
- $60
- EFFECTIVE RATE
- 3.30% of invoices
- COST PER INVOICE
- $66
Your inputs only. Compare this with the fee schedule in any quote you get.
DOCK 03TYPICAL RATES
How much do freight factoring companies charge?
Published industry figures put trucking factoring fees commonly at 1.5% to 4% of each invoice, within a wider range of about 1% to 5%. Advance rates run about 70% to 95%. Those are ranges, not quotes.
Few factors publish a rate for everyone. Of the companies we checked in October 2026, Bobtail publishes negotiable rates with a maximum of 3.24%; the others did not publish a rate.
RTS, our partner, says final rates are set after RTS reviews your business (underwriting). That is normal: your rate reflects your brokers' credit, your volume and the terms you choose.
SOURCE:FreightWaves (updated Feb 26, 2026), OCT 2026;Bobtail (own site), OCT 2026;RTS, freight factoring page (partner's own claims), OCT 2026
Flat vs tiered factoring fees
| STRUCTURE | HOW IT WORKS | WHEN IT WINS |
|---|---|---|
| Flat | One percentage, however long the broker takes. | Predictable. Best when some brokers pay slowly. |
| Tiered | A base rate for the first period, then more for each extra stretch of days. | Cheaper when brokers pay fast; dearer when they do not. |
What moves trucking factoring rates
- Monthly volume
- More invoices usually means a lower percentage.
- Your brokers' credit
- Fast, reliable payers cost the factor less to carry.
- Recourse or non-recourse
- Non-recourse moves credit risk to the factor and usually costs more.
- How fast brokers pay
- On tiered pricing, every extra stretch of days adds to the fee.
- Contract terms
- A longer commitment or factoring every invoice can buy a lower rate.
CHECK EVERY QUOTE FOR THESE
Wire and ACH fees
A charge per transfer. Several transfers a week add up.
Application or setup fee
Charged once, before your first advance.
Monthly minimum fee
Charged when your volume falls below a set amount.
Invoice or processing fee
A flat charge on every invoice, on top of the percentage.
Credit check fees
Charges for checking brokers you want to haul for.
Early exit fee
A fee for leaving before the contract term ends.
Late or aged invoice fees
Extra charges, or recourse, once an invoice passes a set number of days.
DOCK 05LOWER RATE
How to get lower truck factoring rates
1
Bring volume
Quote on your real monthly invoices. Higher, steady volume gets better pricing.
2
Haul for strong payers
Use the factor's credit checks to choose brokers who pay on time.
3
Choose recourse if you can carry the risk
Recourse is usually cheaper. Only do it if a broker default would not sink you.
4
Trade terms for rate carefully
A longer term can lower the rate, but price the exit fee too.
5
Compare the total, not the headline
Two quotes at the same percentage can cost very different amounts once fees are added.
6
Ask again later
After a few months of clean paperwork, ask for a review of your rate.
Your load rates matter as much as your factoring rate. Load profitability calculator · Apply for dispatch
DOCK 06FAQ
Factoring rate questions
Q-01What are typical freight factoring rates?
Published industry figures put them commonly at 1.5% to 4% of each invoice, within about 1% to 5%. What you pay depends on volume, your brokers' credit, recourse terms and how fast brokers pay. Few factors publish one rate for everyone, so compare written quotes on the same month of your invoices.
Q-02Flat vs tiered factoring fees: which is cheaper?
Tiered is cheaper when your brokers pay fast, because you stay in the lowest tier. Flat is cheaper when some brokers pay slowly, because the fee does not rise with time. Look at how long your brokers actually take, then run both in the calculator on this page.
Q-03What hidden fees do factoring companies charge?
The common ones are wire or ACH fees per transfer, application fees, monthly minimum fees, per-invoice processing fees, credit check fees, early exit fees and extra charges on invoices that age past a set number of days. Ask for the complete fee schedule in writing.
Q-04Is non-recourse factoring more expensive?
Usually, yes. With non-recourse, the factor carries the loss if a broker cannot pay for credit reasons, so it charges more for that risk. Check what the non-recourse covers: it is often limited to broker insolvency, not disputes over damaged or short freight.
Q-05How can I get a lower factoring rate?
Quote on your real monthly volume, haul for brokers with strong credit, consider recourse if you can carry the risk, weigh a longer term against its exit fee, and compare total cost rather than the headline percentage. After a few clean months, ask the factor to review your rate.
Get a real rate to put in the calculator
RTS sends a quote with your rate, advance and fees.
We refer carriers to RTS and may be paid for referrals. Rates and terms come from the factoring company, not from us.