Rates, fees, real cost

Freight factoring rates: what you'll actually pay each month

Freight factoring rates are usually quoted as a single percentage. What you pay is that percentage plus whatever else the contract adds. Factoring costs typically land between 1% and 5% of invoice value, according to industry coverage, but two quotes with the same headline rate can cost very different amounts. Here's how to read a quote and work out its real monthly cost.

Works the same for every truck: a reefer invoice with a lumper line, a flatbed invoice with tarp pay, a week of small 26 ft box truck invoices.

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How much cash is stuck with brokers?

Loads per week

Average invoice

Invoiced each week

$8,800

On 30-day broker terms, about $37,700 is out at any time, waiting to be paid. EXAMPLE estimate.

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We refer carriers to RTS Financial and may be paid for referrals. Disclosure

The real cost

Factoring cost calculator: put any quote through it

Enter your monthly invoice count and average invoice, then the rate from a quote. Switch between flat and tiered fees, set how many days your brokers really take to pay, and add per-payment and monthly fees. The dark box is what the quote costs you in a month.

Factoring cost calculator

EXAMPLE

Invoices / month

Average invoice

Flat rate

Days brokers take

DAYS

ACH fee per payment

Monthly or minimum fee

Invoiced this month

$35,200

Total factoring cost

$1,056

Effective rate

3.00%

Fees on top add $0 a month.

Enter the numbers from a real quote. Defaults are EXAMPLE values only.

Try the same quote with brokers paying in 25 days and then 50. On a flat fee, nothing changes. On a tiered fee, the cost climbs with every extra step. That one input often decides which quote is cheaper.

Then add the small fees. A few dollars per payment looks like nothing next to a percentage, until you're funded 20 times a month. The effective rate box shows the whole cost as a single percentage of what you invoiced, which is the only fair way to compare quotes.

For context: factoring costs typically land between 1% and 5% of invoice value. Where you land depends on the things below.

Source: FreightWaves, How To Find the Lowest Factoring Rates for Truckers (February 26, 2026), October 2026

Reading a quote

How to read a factoring rate quote, line by line

Factoring rate

The headline percentage. Check whether it's flat or only covers the first 30 days.

Advance rate

The share of each invoice paid up front. Strong accounts often see 90% to 97% advances; riskier portfolios 60% to 85%.

Reserve

The part held back until the broker pays. Ask when, and how, it's released.

Recourse period

On recourse terms, how many days before an unpaid invoice comes back to you.

Funding fees

Charges for same-day money, ACH transfers or wires. Ask if any are included in the rate.

Minimums and term

Any monthly minimum volume or fee, the contract length and whether it renews on its own.

Source: FreightWaves, How To Find the Lowest Factoring Rates for Truckers (February 26, 2026), October 2026

If a quote leaves out any of these lines, ask for it. A factor that won't put the full cost in writing is telling you something about how the relationship will go.

One more line worth finding: how reimbursable costs are treated. A lumper fee or tarp pay added to the invoice is usually factored at the same rate as the linehaul, so a $300 lumper line costs you the fee too. Ask whether reimbursements are handled differently, and whether they're advanced at all.

Flat vs tiered

Flat or tiered factoring fees, explained plainly

Flat fee

One percentage, however long the broker takes. A 3% flat fee on a $2,000 invoice is $60 whether the broker pays in 15 days or 60. Easy to plan around, and it protects you from slow payers. On fast-paying brokers, you may pay a little more than you would on a tiered fee.

Tiered fee

A base percentage for the first period, often 30 days, with more added for each extra period the invoice stays open. Cheaper when brokers pay quickly, more expensive when they don't. The headline rate looks lower, which is why it needs the closest reading.

The test is simple: look at how fast your last ten invoices were really paid, not the terms on paper, and run both structures through the calculator with that number.

What drives your rate

What decides the rate you're offered

Factors price risk and effort. Anything that makes your invoices safer or easier to process tends to lower the rate.

Your brokers' credit

The factor collects from your brokers, not from you. Brokers with strong credit and a history of paying on time mean lower risk.

Your monthly volume

More invoices each month, and steadier volume, generally mean better pricing. Small fleets often do better than single trucks.

Invoice size

A few large invoices cost less to process than many small ones. Box truck and hotshot carriers with many small invoices should watch per-invoice fees.

How fast brokers pay

Faster payment means less time the factor's money is out, which matters most on tiered fees.

Recourse or non-recourse

Non-recourse moves some risk to the factor, which usually costs more.

Clean paperwork

Invoices that match the rate con and come with signed PODs are cheaper to handle and get paid faster.

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EXAMPLE

Same quote, two very different trucks

EXAMPLE quote and carriers, not real offers. Both get the same quote: 3% flat, plus $5 per ACH payment.

26 ft box truck

40 small invoices a month averaging $450, total $18,000. Percentage fee $540, payment fees $200. Effective rate about 4.1%.

Flatbed

8 invoices a month averaging $2,500, total $20,000. Percentage fee $600, payment fees $40. Effective rate 3.2%.

Same quote, almost a full point apart. Carriers with many small invoices should ask for transfers to be batched into one payment a day, or included in the rate. Carriers with a few big invoices care more about the percentage itself.

Lower your rate

How to get a lower factoring rate

Get competing quotes in writing. A real number from another company is the strongest thing you can bring to the conversation.
Show your brokers. A list of established brokers who pay reliably makes your invoices less risky to buy.
Offer steady volume. If you can commit to a realistic monthly amount, ask what that's worth, but don't sign a minimum you might miss.
Choose recourse if you can carry it. It usually costs less. Know exactly what you'd owe if a broker never pays.
Ask for a review. After a few months of clean paperwork and on-time broker payments, ask for your rate to be looked at again.

Hidden fees

The factoring fees to ask about before you sign

Most extra fees aren't hidden in small print so much as never asked about. Take this list to every factoring company and get each answer in writing:

Same-day or next-day funding fees
ACH and wire transfer fees, per payment
Invoice processing or setup fees
Fuel advance fees
Monthly minimum volume, and the fee if you miss it
Rate increases for invoices open past 30, 45 or 60 days
Termination or early exit fees
Fees for buying back unpaid invoices on recourse terms
Charges for credit checks or collections on slow brokers

Then enter every one of them into the calculator above. The quote with the lowest effective rate on your own invoices is the cheapest one, whatever its headline says. For a side-by-side of real companies, see the best factoring companies compared.

Our partner

Getting a quote from RTS Financial

Here's what RTS Financial publishes about its factoring:

RTS buys the invoice and advances more than 90 percent of the total within 24 hours.
Once the broker pays the invoice, RTS sends the remaining balance minus a small fee.
Rates shown by RTS are estimates, not a guaranteed offer. Your actual rate is set after review of your authority and your brokers.

Source: RTS Financial, freight factoring page and FAQs, October 2026

Our quote form sends your details to RTS Financial. You get a real number to put through the calculator next to any other quote you have. We don't set factoring rates and don't see your contract.

Dispatch too

The rate on the load matters more than the rate on the invoice

A factoring fee comes out of what each load pays. Raise the load rate, and the fee matters less. Our dispatch desk negotiates loads for every truck from 26 ft box trucks to step decks, with detention and lumper terms on the rate con. Nothing is booked until you say yes, and the broker sends the rate con straight to you. The fee is 5% of gross for one truck with authority older than 6 months. Start dispatch.

Factoring rates and fees: straight answers

Q01What hidden fees do factoring companies charge?

The ones carriers most often miss are same-day funding fees, ACH or wire fees per payment, invoice processing fees, fuel advance fees, monthly minimum fees, and rates that rise the longer a broker takes to pay. Termination fees and charges for buying back unpaid invoices can also apply. Ask for every fee in writing before you sign.

Q02What is an ACH or wire fee in factoring?

It's a charge for sending your money. ACH transfers are cheaper and usually land the next business day. Wires are faster, often same day, and usually cost more. Some factors include transfers in the rate, others charge per payment. If you get paid many times a month, a small per-payment fee can add up to more than you expect.

Q03How can I get a lower factoring rate?

Haul for brokers with strong credit who pay quickly, keep your paperwork clean, and increase your monthly volume where you can. Ask about recourse terms, which often cost less than non-recourse. Get two or three written quotes and compare the total cost on your own invoices. Once you have a few months of clean history, ask your factor to review your rate.

Q04Flat vs tiered factoring fees: which is cheaper?

It depends on how fast your brokers pay. Tiered fees, which start low and rise with time, can be cheaper when brokers pay quickly. Flat fees cost the same whether a broker pays in 20 days or 60, which makes them cheaper with slow payers and easier to plan around. Run both through the calculator with your real payment times.

Q05Do volume discounts exist in factoring?

Yes. Higher and steadier monthly volume generally earns better pricing, because the factor's costs are spread over more invoices. Small fleets often get lower rates than single trucks for that reason. Ask whether your rate will be reviewed as your volume grows, and get any volume-based pricing written into the contract.

We refer carriers to RTS Financial and may be paid for referrals. See our disclosure.

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Short form. A quote from RTS Financial. No obligation.

Load offer · 53 ft dry van

Joliet, IL Columbus, OH

EXAMPLE

RATE: $1,050
MILES: 352+18
ALL-IN RPM: $2.84

Freight: Paper goods, 38,500 lb
Pickup: Tue 07:00-09:00 · Deliver: Tue 17:00 appt
Detention $50/hr after 2 hrs
Lumper reimbursed with receipt

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