{
  "name": "2026 Freight Factoring Rate Index",
  "description": "A transparent, math-backed benchmark of the effective annualized cost (effective APR) of freight factoring for trucking owner-operators in 2026. Models the effective APR behind a quoted 1.5-5% per-invoice factoring fee across common fee and days-to-pay scenarios. This is scenario math from published 2026 fee ranges, NOT a survey of proprietary or negotiated company rates.",
  "publisher": "TruckMargin",
  "publisherUrl": "https://truckmargin.com",
  "canonicalPage": "https://truckmargin.com/freight-factoring-rate-index",
  "dataUrl": "https://truckmargin.com/data/factoring-apr-index.json",
  "license": "https://truckmargin.com/terms",
  "attribution": "Source: TruckMargin 2026 Freight Factoring Rate Index (https://truckmargin.com/freight-factoring-rate-index)",
  "version": "2026.07",
  "lastUpdated": "2026-07",
  "revisionNote": "Q3 2026 review (2026-07): published 2026 fee ranges re-checked against current sources (Porter Freight Funding, O Trucking, England Logistics, Truckstop, Academy of DLA); the modeled 1.5-5% fee band and the APR matrix remain current and unchanged.",
  "isAccessibleForFree": true,
  "methodology": "Effective APR = quoted fee (as a percent of invoice face value) x 365 / days-to-pay. The fee buys only a few weeks of early payment, so the real annualized cost is the fee spread over those days. Modeled from published 2026 freight-factoring fee ranges (Porter Freight Funding, OTR Solutions, England Logistics, FreightWaves 'Cost of Factoring', Resolve). NOT a survey of proprietary or negotiated company rates. ACH and monthly-minimum add-ons are excluded from the headline matrix (they raise the effective rate). Using the advanced amount (e.g. 95% of the invoice) as the denominator instead of the full invoice raises each figure by roughly 3-6%.",
  "formula": "effective_apr_pct = fee_pct * 365 / days_to_pay",
  "units": {
    "fee_pct": "percent of invoice face value",
    "days_to_pay": "calendar days you would otherwise wait to be paid",
    "effective_apr_pct": "percent (annualized)"
  },
  "headline": {
    "typical_owner_operator_fee_pct": "2.0-3.5",
    "effective_apr_range_pct": "24-60",
    "example": "A 2% fee on a 30-day invoice is about a 24% effective APR."
  },
  "daysToPay": [30, 45, 60],
  "matrix": [
    { "fee_pct": 1.5, "apr_30d_pct": 18.3, "apr_45d_pct": 12.2, "apr_60d_pct": 9.1 },
    { "fee_pct": 2.0, "apr_30d_pct": 24.3, "apr_45d_pct": 16.2, "apr_60d_pct": 12.2 },
    { "fee_pct": 2.5, "apr_30d_pct": 30.4, "apr_45d_pct": 20.3, "apr_60d_pct": 15.2 },
    { "fee_pct": 3.0, "apr_30d_pct": 36.5, "apr_45d_pct": 24.3, "apr_60d_pct": 18.3 },
    { "fee_pct": 3.5, "apr_30d_pct": 42.6, "apr_45d_pct": 28.4, "apr_60d_pct": 21.3 },
    { "fee_pct": 4.0, "apr_30d_pct": 48.7, "apr_45d_pct": 32.4, "apr_60d_pct": 24.3 },
    { "fee_pct": 5.0, "apr_30d_pct": 60.8, "apr_45d_pct": 40.6, "apr_60d_pct": 30.4 }
  ],
  "byCarrierProfile": [
    { "profile": "New authority / owner-operator", "monthlyVolume": "$15k-$25k", "typicalFeePct": "3.0-4.0", "effectiveAprPct_40d": "27-37" },
    { "profile": "Established solo", "monthlyVolume": "$25k-$50k", "typicalFeePct": "2.5-3.5", "effectiveAprPct_40d": "23-32" },
    { "profile": "Small fleet", "monthlyVolume": "$50k-$150k", "typicalFeePct": "1.5-3.0", "effectiveAprPct_40d": "14-27" },
    { "profile": "Larger fleet", "monthlyVolume": "$150k+", "typicalFeePct": "1.0-2.0", "effectiveAprPct_40d": "9-18" }
  ],
  "variables": [
    { "variable": "Advance rate", "typicalRange2026": "90-97% recourse, 80-90% non-recourse", "effect": "Lower advance means less cash today; the rest is held as reserve." },
    { "variable": "Reserve / holdback", "typicalRange2026": "5-20% (many trucking factors waive it)", "effect": "Your money, released minus the fee when the customer pays." },
    { "variable": "Recourse vs non-recourse", "typicalRange2026": "Non-recourse adds ~0.5-1.5%", "effect": "Shifts customer-insolvency risk to the factor; usually excludes ordinary disputes." },
    { "variable": "Flat vs tiered fee", "typicalRange2026": "Flat 2-3%, tiered steps up at day 31/46/61", "effect": "On slow-paying freight a tiered plan can beat a flat fee, or cost more." },
    { "variable": "Hidden add-ons", "typicalRange2026": "ACH $3-10, wire $5-30, processing $1-5, monthly minimums, early-termination 3-6% of facility", "effect": "A $5 fee on a $1,000 invoice silently adds 0.5%." }
  ],
  "notes": [
    "Anything under about 3.5% recourse with no hidden ACH or monthly-minimum fees is competitive for a solo owner-operator.",
    "Your fee depends mostly on monthly volume, the credit of your brokers, and recourse vs non-recourse, not your own credit.",
    "Figures are modeled benchmarks, not company-quoted rates."
  ],
  "disclaimer": "Estimates and modeled benchmarks for planning only - not financial advice, and not a quote. Confirm exact terms with the factor."
}