The short answer
Trucking factoring is priced as a percentage of each freight invoice. Across the market, quoted rates run from about 1% to 5% of the load, and most small carriers land between 2% and 4%. Advances are high compared with other industries, usually 90% to 97% of the load up front, and some programs advance the full amount less the fee with no reserve held back.
On a $2,500 load at a 3% flat rate, the fee is $75. That is the price of having the money the next morning instead of when the broker pays.
The rate is only part of the bill. Transfer fees, fuel advance charges, monthly minimums and termination terms can add a point or more to what you actually pay, so compare offers on total monthly cost rather than the headline percentage. Our guide to hidden factoring fees lists each one.
What trucking factoring costs, line by line
| Cost item | Typical range | How it works |
|---|---|---|
| Factoring rate | 1% to 5% per load | Charged on the invoice amount, flat or tiered by days outstanding |
| Advance rate | 90% to 97% | Share of the load paid to you up front |
| Reserve | 0% to 10% | Held until the broker pays, then released minus the fee |
| Non-recourse premium | about 0.5 to 1.5 points | Added to the rate when the factor takes broker credit risk |
| Transfer fees | a few dollars per ACH, more for same-day wires | Charged per payment you receive |
| Fuel advance fee | a flat charge or a percentage of the advance | Charged when you draw cash before delivery |
| Monthly minimum | varies; some contracts have none | A charge if your volume falls below a set amount |
Ranges are typical quotes, not offers. Each factoring company sets its own pricing after reviewing your brokers and volume.
Flat rate or tiered rate
Flat pricing charges one percentage no matter when the broker pays, within a set window such as 60 or 90 days. It is simple to budget: a 3% flat rate costs 3% whether the broker pays in 20 days or 50.
Tiered pricing starts lower and climbs the longer the invoice stays open, for example a low rate for the first 30 days plus an extra amount for each additional 10 or 15 days. It costs less when your brokers pay quickly and more when they do not.
Which is cheaper depends on your own payment history, not on the lowest number in the quote. Pull the days-to-pay on your last 50 loads before you choose. If most brokers pay inside 30 days, a tiered rate often wins. If a few slow brokers make up a big share of your freight, a flat rate can be cheaper overall.
A worked example
An owner-operator runs about 20 loads a month at an average of $2,500 per load, or $50,000 a month in freight bills. The factor offers a 95% advance and a 3% flat rate. The broker pays in 35 days.
| Step | One load |
|---|---|
| Load amount | $2,500 |
| Advance paid the next business day (95%) | $2,375 |
| Reserve held back (5%) | $125 |
| Factoring fee (3% flat) | $75 |
| Reserve released when the broker pays | $50 |
| Total received | $2,425 |
Across 20 loads, the fees come to $1,500 a month, or about $18,000 a year. If the same carrier also pays a few dollars per transfer and draws fuel advances on half its loads, those charges sit on top of the $1,500. That is why the same 3% rate can cost two carriers different amounts.
Now compare a hypothetical tiered offer of 2% for the first 30 days plus 0.5% for each 10 days after. On a load paid in 35 days, the fee is 2.5%, or $62.50, which beats the flat rate. On a load paid in 55 days, it is 3.5%, or $87.50, which does not. Your broker mix decides which offer is cheaper.
Run your own numbers
The calculator below starts with the example above. Change the load amount, advance, rate and days to match the quote you have in hand. Switch to "Per 30 days" if your quote is tiered by period.
Your results
- Cash today (advance)
- $2,375.00
- Reserve held back
- $125.00
- Total cost (factoring fee)
- $75.00 (3% of invoice)
- Rebate when your customer pays
- $50.00
Estimates only. Actual rates and advances are set by each factoring company.
What drives your rate
Your brokers' credit. The factor is underwriting the brokers who owe you, not your own credit score. Loads from established brokers with strong payment records price lower than loads from new or slow-paying brokers.
Monthly volume. Factoring companies have fixed costs per account, so steady, larger volume usually earns a lower percentage. A one-truck operation factoring $15,000 a month should expect a higher rate than a fleet factoring $300,000 with the same brokers.
Recourse or non-recourse. With recourse, you buy back a load the broker does not pay. Non-recourse moves the credit risk of an approved broker going under to the factor, which costs more, and it usually covers insolvency only, not disputes or late payment. Our recourse vs. non-recourse guide explains what is and is not covered.
Contract length and exclusivity. Month-to-month agreements with no minimum usually carry a higher rate than a 12-month contract that requires you to factor every load. Read the termination clause before you weigh a lower rate: the cost of leaving is part of the price.
Paperwork quality. Clean rate confirmations, signed bills of lading and proof of delivery speed verification. Loads that need extra follow-up cost the factor time, and some contracts charge for it.
How to compare two quotes
- Ask each factor for its rate at 30, 45 and 60 days, plus every fee in writing.
- Price both offers against your real broker payment times for one recent month.
- Add transfer fees, fuel advance fees and any minimum to each total.
- Read the termination and notice terms, including any fee to leave and how much notice you must give.
- Compare the monthly total, not the headline rate.
If you want quotes from factors that work with carriers your size, the freight and trucking hub lists them, or use Get a Quote below. For the general picture across all industries, see what invoice factoring costs.
Frequently asked questions
How much does freight factoring cost per load?
Most carriers pay between 1% and 5% of each load, with many small carriers between 2% and 4%. On a $2,500 load, that is $25 to $125. Transfer fees, fuel advance charges and minimums are extra and should be added before you compare offers.
What advance rate do trucking factoring companies give?
Advances usually run from 90% to 97% of the load. Some programs pay the full load minus the fee with no reserve. A higher advance is not automatically a better deal: check the rate and fees that come with it.
Is a flat rate or a tiered rate cheaper for truckers?
It depends on how fast your brokers pay. A tiered rate is usually cheaper when most brokers pay within 30 days. A flat rate is often cheaper when several of your brokers routinely take 45 days or more.
Does non-recourse factoring cost more?
Yes. Non-recourse typically adds about half a point to a point and a half to the rate. It usually protects you only if an approved broker becomes insolvent, not if the broker disputes the load or simply pays late.
Can a new trucking company get a low factoring rate?
New authorities can factor, since approval depends mostly on the brokers' credit, but they usually start at the higher end of the range because volume is low and there is no payment history yet. Rates often come down after a few months of steady volume. See our guide to factoring with new authority.