Freight factoring rates: what a quote really costs on a specialty load

Rate quote decoder

An EXAMPLE quote, line by line, as it might appear for a flatbed carrier invoicing about $40,000 a month:

Each line changes the real cost. A quote that leads with a low fee but adds transfer charges, a long term and a high minimum can cost more over a year than a slightly higher flat fee with none of those. EXAMPLE

Work out your own cost

Typical freight factoring rates

These ranges come from one article published on FreightWaves in July 2026 by Summar Financial, itself a factoring company, so treat them as a guide rather than an independent survey. Source RTS Financial doesn't publish its rate; it sends the balance minus a small fee and quotes each carrier individually. Source

Hidden fees checklist

• Transfer fees: ACH, wire or same-day charges per payment.
• Time-based increases: tiers that add a percentage every 10, 15 or 30 days a broker doesn't pay.
• Minimum volume charges: a fee when you factor less than the monthly minimum.
• Early termination fees: a charge to leave before the term ends.
• Setup or application fees: one-time charges to open the account.
• Fuel advance fees: a charge for advancing money at pickup.
• Paper and mailing fees: charges for invoices sent by mail rather than through the app.
• Credit check fees: charges to approve a new broker.

Ask for a written list of every fee, then run a typical month through the calculator with all of them included.

Reading a rate quote

Start with the advance and the fee, then look at everything that can change them. A 90% advance with a 3% fee leaves 7% of the invoice to come back as the released reserve. If the fee is tiered, find out how many days you get at the base rate and what each extra period adds, then compare that with how fast your brokers really pay. If the quote is recourse, find the number of days before an unpaid invoice comes back to you. Finally, check the term and minimums against your slowest month, not your best.

Some factors advance more and charge a bit more; others advance less and charge less. Higher advances help cash flow most when you are short; a lower fee matters most at high volume. RTS Financial states it advances more than 90 percent within 24 hours. Source

What moves your rate

• Monthly volume: more invoices usually bring a lower rate.
• Your brokers: factoring is priced on their credit, not yours. Source
• Recourse: non-recourse costs more because the factor takes more risk.
• Commitment: contracts and factoring every invoice usually price lower than spot factoring.
• Invoice size: flat per-invoice fees weigh more on small invoices, such as 26 ft box truck or hotshot loads.

The fee next to the other costs of a specialty load

Worked example: an oversize load EXAMPLE

A step deck hauls an over-width load for a $4,800 invoice. Before the truck moved, the carrier paid $280 in permits and $650 for an escort, both reimbursed on the invoice. Fuel for the run is about $700. At a 2.5% flat fee, factoring costs $120 and puts about $4,320 in the bank the next day. Next to the $930 already spent on permits and escorts, the fee is the smallest line; what matters is that the cash arrives before the next permit order.

Ask whether your factor charges the same percentage on reimbursed lines like permits and escorts as on the linehaul, because on heavy haul invoices those lines can be a large share. See how factoring works for a full heavy haul invoice.

Comparing two quotes EXAMPLE

Two made-up quotes on the same month of 0,000 in invoices, with brokers paying in about 40 days:

Quote A looks cheaper on the first line and costs more by the last one. The difference comes from slow brokers and per-transfer fees.

The recourse period

On a recourse agreement, the quote names a number of days after which an unpaid invoice comes back to you. Before that point the factor chases the broker; after it, you buy the invoice back, often by having it taken out of your next advances. A longer recourse period gives brokers more time to pay before it lands on you. Ask what happens if a broker pays a week after the invoice has already been charged back.

Rates on small invoices: box trucks and hotshots

26 ft box trucks and hotshots often run several smaller loads a week. Per-invoice charges such as transfer fees weigh much more on a 00 invoice than on a ,000 one; a 5 fee is over 2% of the small invoice on its own. If your invoices are small, prefer quotes that include transfers, let you batch several invoices into one payment, or charge a flat percentage with no per-invoice extras. See hotshot factoring.

Rates for new authorities

A brand-new carrier usually has low volume and no track record, which can mean a higher rate or tighter terms at first. Because factoring is priced on your brokers' credit, a new authority hauling for strong brokers can still get a workable quote. Ask whether the rate drops after a set period or volume, and avoid long terms you can't leave once your volume grows and better pricing becomes available. More in factoring for new authorities.

When a rate looks too good

A very low headline rate usually comes with something else: a long contract, a high monthly minimum, a short base period before tiers kick in, or fees for things other factors include. None of these is wrong if you know about them and they fit how you work. The problem is finding out after you sign. Read the full agreement, not the sales sheet.

Getting a better rate

1. Get quotes from more than one factor on the same invoices.
2. Haul for brokers with strong payment records.
3. Submit clean paperwork so invoices fund and close quickly.
4. Ask about the rate at your next volume tier before you reach it.
5. Choose flat or tiered based on your real broker payment times.
6. Ask for transfer fees to be included, or for invoices to be batched into one payment.
7. Review your rate once a year, when your volume and payment history give you more to negotiate with.

Keep a simple log of each factored invoice: amount, fee, days to pay and any extra charges. After three months it tells you your real cost per load better than any quote can.

The rate matters, but so does whether factoring fits you at all; see is factoring worth it and the main guide to freight factoring. When you dispatch with us, factoring stays optional, the rate con comes straight to you, and we never touch your payments. See dispatch for owner-operators.