How Much Does Factoring Cost?
Factoring costs a percentage of each invoice (the discount rate) plus any add-on fees, and the rate depends on recourse terms, your monthly volume, your customers' credit and how long they take to pay. Rates vary by company and contract, so compare the total cost per invoice, not the headline rate.
By TruckerStack Editorial, AK Digital Marketing LLC · Checked against official sources on 2026-11-04 · Editorial policy · Not insurance, legal or financial advice.
The parts of the price
- Discount rate: flat per invoice, or tiered by days outstanding (rises the longer the broker takes).
- Add-on fees: same-day ACH/wire, fuel advance, invoice processing, monthly minimums, early termination.
- Reserve: not a fee, but cash you wait for.
- Recourse: non-recourse generally prices higher.
Work out your true cost
Use this formula with the numbers from a written quote:
Cost per invoice = invoice × discount rate (for actual days to pay) + all per-invoice fees + (monthly fees ÷ invoices per month)
Effective % of revenue = cost per invoice ÷ invoice amount
Then add that % to your operating cost in the cost per mile calculator to see your real break-even rate.
How to lower it
- Book with fast-paying, creditworthy brokers (check them in our lookup).
- Negotiate once you have steady volume.
- Avoid fees you do not need (same-day wires, fuel advances).
- Consider spot factoring or quick-pay from brokers for occasional loads.
Choosing a provider: freight factoring companies guide.
FAQ
How much does factoring cost?
A discount rate per invoice plus any fees; the rate depends on recourse, volume, customer credit and days to pay. Get written quotes and compare total cost.
Is non-recourse factoring more expensive?
Generally yes, because the factor takes on defined credit risk.
What hidden fees should I check?
ACH/wire, fuel advance, invoice, monthly minimum and early termination fees.