Typical factoring rates in 2026
| Situation | Common fee per invoice |
|---|---|
| Established carrier, high volume, creditworthy brokers | About 1%–3% |
| Small fleet or owner-operator, steady volume | About 2%–4% |
| New authority, low volume or riskier brokers | About 3%–5% |
| Broker quick pay (instead of a factor) | Often 1%–5% for payment in 1–7 days |
Ranges reflect common published offers from factoring companies and broker quick-pay programs. Your rate depends on volume, the brokers you haul for, recourse terms and contract length.
Flat-rate vs tiered pricing
Flat rate: one fee per invoice, no matter how long the broker takes to pay, such as 3%. Easy to understand and the most common for owner-operators.
Tiered or time-based: a lower starting fee that rises the longer the invoice is unpaid, such as 1.5% for 30 days plus 0.5% for every extra 15 days. Cheaper if your brokers pay quickly; more expensive with slow payers.
Volume-based: the fee drops as your monthly volume grows. Make sure you'll really reach the lower tier.
The fees that aren't in the headline rate
- Transfer fees: ACH is often free or a few dollars; same-day wire transfers often cost $15–$30 each.
- Monthly minimums: a fee if you factor less than a set amount.
- Reserves: some factors advance 90%–97% and hold the rest until the broker pays.
- Credit check, setup, invoice processing or postage fees.
- Termination fees and auto-renewal: one- or two-year contracts that renew unless you cancel in a short window.
- All-invoice requirements: contracts that make you factor every load, even from fast-paying brokers.
What factoring really costs per year
A 3% fee to get paid 30 days early is the same as borrowing at a very high annual rate. The table shows the approximate yearly cost by fee and by how many days early you're paid:
| Fee | 15 days early | 30 days early | 45 days early |
|---|---|---|---|
| 1.5% | 37% | 19% | 12% |
| 2.0% | 50% | 25% | 17% |
| 3.0% | 75% | 38% | 25% |
| 4.0% | 101% | 51% | 34% |
| 5.0% | 128% | 64% | 43% |
Yearly cost ≈ fee ÷ (1 − fee) × 365 ÷ days paid early
That doesn't make factoring a bad deal. It can keep a new carrier running and covers credit checks and collections. But if you can afford to wait on some invoices, factor only the slow payers. Run your own numbers in the freight factoring calculator.
Recourse vs non-recourse
With recourse factoring, you buy back any invoice the broker doesn't pay, usually after 60–90 days. With non-recourse, the factor absorbs the loss, but usually only if the broker goes out of business, not for disputes. Non-recourse usually costs about half a point to a point more. See recourse vs non-recourse factoring.
How to compare factoring offers
- Get the full fee schedule in writing, not just the headline rate.
- Estimate your monthly cost: invoices × fee + transfer fees + any minimum.
- Check contract length, renewal terms and how to exit.
- Ask whether you can choose which invoices to factor.
- Check reviews from other small carriers, especially about chargebacks and reserves.
Common questions
What is a normal freight factoring rate?
Usually 1% to 5% of each invoice. Many owner-operators pay 2% to 4%, while high-volume carriers can get under 2%.
How much do freight factoring companies charge?
A percentage of each invoice, often 1% to 5%, plus possible transfer fees, monthly minimums and termination fees. Compare the total monthly cost, not just the rate.
Is 3% factoring expensive?
3% for getting paid about 30 days early works out to roughly 37% a year. It can still be worth it for cash flow, but it's a real cost to price into your rates.
What's the difference between factoring and quick pay?
Quick pay is offered by a broker to pay its own invoices early for a fee. Factoring covers invoices from all your brokers and usually includes credit checks and collections.