Flat fee
One percentage, whenever the broker pays. Easy to compare and predictable when brokers are slow.
Freight factoring rates, line by line
A factoring rate is never just one number. The headline percentage, the advance, the reserve and a list of small fixed fees together decide what a load really costs you. Here is how to read a quote, and why small invoices feel the extras most.
Monthly invoices
See my factoring rateWe refer carriers to a factoring partner and may be paid for referrals.
MILE02RATE QUOTE DECODER
Decode an example quote
Tap each line of this EXAMPLE quote to see what it means. Then slide the invoice size to see the real rate once fixed fees land on it.
FACTORING QUOTE
Kept from every invoice. Flat means it doesn't rise if the broker pays slowly.
EFFECTIVE RATE ON THIS INVOICE
The 3% headline becomes 5.31% once $15 of fixed fees land on a $650 invoice. Small invoices feel fixed fees most, which is why box truck and hotshot carriers should read every line.
MILE03PUBLISHED RATES
What factors publish
Many factors don't publish rates, and the ones that do usually show a starting rate. These come from a 2026 review; your quote may differ.
| Company | Published starting rate | Advance | Contract |
|---|---|---|---|
| Transportation Management Group | 0.65%+ | Up to 100% | 30-day |
| AltLINE | 0.90%+ | Up to 100% | Short-term |
| Scale Funding | 1%+, by volume | 95% | None required |
| TruckSmarter | 2.5%+ | Not stated | Can be ended |
| Apex Capital, RTS Financial, TAFS | Not published | Not stated | Varies |
SOURCE: NerdWallet, best factoring companies for trucking (Apr 30, 2026). We list these for context only; we refer carriers to one factoring partner.
Starting rates usually go to carriers with higher volume and strong brokers. A single truck with a new authority often sees higher quotes. That's why reading the full quote matters more than the headline.
MILE04FLAT VS TIERED
Flat or tiered fees
Tiered fee
A lower starting percentage that rises each week, or each set number of days, the broker takes to pay. Cheaper with fast-paying brokers, costlier with slow ones.
Which to pick
Look at how long your brokers really take. If most pay in 30 days or more, run the numbers on a tiered quote at day 30 and day 45 before choosing it.
MILE05READING A QUOTE
Read a quote in six steps
- Find the fee type. Flat or tiered, and on what amount: the full invoice or the advance.
- Find the advance. How much arrives on day one, and what's held back.
- Find the reserve rules. When the reserve is released, and whether it can be held to cover other invoices.
- List every fixed fee. ACH, wire, same-day, invoice processing, monthly, application.
- Find the term. How long, how it renews, and how to leave.
- Find the recourse period. How many days before an unpaid invoice is charged back to you.
MILE06HIDDEN FEES
Fees that raise the real rate
- ACH or wire fees. A fixed charge each time money moves. Small, until it lands on a $500 invoice.
- Same-day funding. Useful when you need it; a quiet cost if it's on by default.
- Monthly minimums. A charge if you don't factor enough in a slow month.
- Application or setup fees. Paid before a single invoice is bought.
- Early termination fees. The cost of leaving a long agreement early.
- Reserve held long. Not a fee, but cash you can't use.
Run a full trip with the fee included in the load profitability calculator, then compare factors on our comparison page.
MILE07SMALL INVOICES
Why small invoices pay more
Fixed fees don't care about invoice size. A $15 transfer fee is 0.6% of a $2,500 reefer invoice and 2.3% of a $650 box truck invoice. For carriers running several short loads a week, batching invoices into fewer transfers can cut the real rate noticeably.
Ask any factor whether fees apply per invoice or per transfer, and whether you can batch.
SAME FEE, TWO INVOICES
EXAMPLE
- $15 fee on $2,500 invoice
- 0.6%
- $15 fee on $650 invoice
- 2.3%
Difference+1.7 pts
MILE08LOWER YOUR RATE
How to get a lower rate
- 01Get three quotes. Factors price differently for the same carrier. A written quote from more than one is the easiest saving.
- 02Factor more with one company. Volume usually lowers the rate. Splitting invoices across factors works against you.
- 03Haul for strong brokers. Invoices from brokers with good credit and fast payment cost the factor less to carry.
- 04Choose recourse if you can. If you can absorb an unpaid invoice now and then, recourse is usually cheaper.
- 05Skip extras you don't need. Same-day funding and paper checks add up. Next-day ACH in batches is often enough.
- 06Ask again as you grow. A rate set when you had one truck and a new MC doesn't have to last forever.
MILE09DISPATCH
Better loads beat lower fees
A cheaper factoring rate saves a fraction of a percent. A better rate on the load itself can be worth far more. Our dispatch desk counters every offer and checks every broker; you approve each load, and the rate con comes straight to you. See how we dispatch or start dispatch.
MILE10FAQ
Factoring rate questions
Q01What are typical freight factoring rates?
Published starting rates in a 2026 review of trucking factors ranged from under 1% to 2.5% and up, and many factors don't publish rates at all. Small carriers with low volume are often quoted above the starting rates. Compare the total cost, including every extra fee.
Q02Do volume discounts exist in factoring?
Yes. Factors often price by monthly volume, so carriers who factor more each month usually get lower rates. If your volume grows, ask for a review of your rate.
Q03How can I get a lower factoring rate?
Factor more volume with one company, haul for brokers with strong credit, choose recourse over non-recourse if you can carry the risk, skip same-day funding unless you need it, and get quotes from more than one factor.
Q04Do factoring rates depend on broker credit?
Often, yes. The factor is paid by the broker, so loads for brokers with strong credit and fast payment are lower risk. Some factors won't buy invoices from brokers with weak credit at all.
Q05Flat vs tiered factoring fees: which is cheaper?
It depends on how fast your brokers pay. A tiered fee can start lower but rise every week or so the broker takes; a flat fee stays the same. If your brokers pay slowly, flat is often cheaper.
Q06Are factoring fees tax deductible?
Factoring fees are generally treated as a business expense, but rules vary. Ask your tax preparer how they apply to your business.
Q07Is a 100% advance better?
Not automatically. A 100% advance with a higher fee or more extras can cost more than a 95% advance with a lower fee. Compare what you receive in total per invoice, not the advance alone.
Q08Do factors charge more for small carriers?
Often, because low volume means fixed costs per invoice are spread over less money. Batching invoices, avoiding per-invoice fees and growing volume with one factor all help.
Q09Does the factoring fee apply to the whole invoice?
Usually the fee is a percentage of the full invoice amount, not just the advance. Some quotes calculate it differently, so check which amount the percentage applies to before you compare two factors.
Q10What's a reasonable reserve?
Many quotes hold back a small share of each invoice, often the difference between the advance and 100%. What matters is how long the factor can hold it and when it's released. Get both in writing.
See my factoring rate
We refer carriers to a factoring partner and may be paid for referrals.