A transparent benchmark of what freight factoring really costs once you annualize it — the effective APR behind a quoted 1.5–5% fee, modeled across common pay-timing scenarios. The number factoring companies don't put on the page.
Freight factoring fees run 1.5–5% per invoice in 2026 (2–3.5% typical for owner-operators). Annualized, that's a 24–60% effective APR — a 2% fee on a 30-day invoice ≈ 24% APR. This index models that real cost across common fee scenarios.
Math-backed model from published 2026 freight-factoring fee ranges (Porter, OTR, England Logistics, FreightWaves, Resolve) — not a survey of company rates. Effective APR = fee × 365 ÷ days-to-pay. Updated June 2026.
This is the table the rate quote hides. Read down your quoted fee, across to how long your broker takes to pay, and you have the true annualized cost of that cash. Assumptions: fee shown as a percent of invoice face value; APR = fee × 365 ÷ days-to-pay; ACH and monthly-minimum add-ons excluded (they raise it — model them in the calculator below).
| Quoted fee / invoice | Paid in 30 days | Paid in 45 days | Paid in 60 days |
|---|---|---|---|
| 1.5% | 18.3% APR | 12.2% APR | 9.1% APR |
| 2.0% | 24.3% APR | 16.2% APR | 12.2% APR |
| 2.5% | 30.4% APR | 20.3% APR | 15.2% APR |
| 3.0% | 36.5% APR | 24.3% APR | 18.3% APR |
| 3.5% | 42.6% APR | 28.4% APR | 21.3% APR |
| 4.0% | 48.7% APR | 32.4% APR | 24.3% APR |
| 5.0% | 60.8% APR | 40.6% APR | 30.4% APR |
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%. Figures are modeled, not company-quoted.
Enter the fee you were quoted and how long your broker takes to pay. Add any per-invoice ACH/wire fee to see the all-in number.
Effective rate = (fee + ACH fee) ÷ invoice. Effective APR = effective rate × 365 ÷ days-to-pay — the cost of the few weeks of early payment factoring buys you. For a full picture (advance, reserve, monthly minimums, annual cost), use the freight factoring rate & true-cost calculator.
Your fee depends mostly on monthly volume, the credit of your brokers, and recourse vs non-recourse — not your own credit. The effective-APR column assumes recourse pricing and a ~40-day broker payment (fee as a percent of invoice).
| Carrier profile | Monthly volume | Typical fee | ≈ Effective APR (40-day) |
|---|---|---|---|
| New authority / owner-operator | $15k–$25k | 3.0–4.0% | 27–37% |
| Established solo | $25k–$50k | 2.5–3.5% | 23–32% |
| Small fleet | $50k–$150k | 1.5–3.0% | 14–27% |
| Larger fleet | $150k+ | 1.0–2.0% | 9–18% |
Modeled from published 2026 recourse-rate ranges. Higher volume earns a lower fee; non-recourse adds ~0.5–1.5%. Anything under ~3.5% with no hidden fees is competitive for a solo.
| Variable | 2026 typical range | Effect on your real cost |
|---|---|---|
| Advance rate | 90–97% recourse · 80–90% non-recourse | Lower advance = less cash today; the rest is held as reserve |
| Reserve / holdback | 5–20% (many trucking factors waive it — "no reserve") | Your money, released minus the fee when the customer pays |
| Recourse vs non-recourse | Non-recourse adds ~0.5–1.5% | Shifts customer-insolvency risk to the factor; usually excludes ordinary disputes |
| Flat vs tiered fee | Flat 2–3% · tiered steps up at day 31/46/61 | On slow-paying freight a "1.5%" tiered plan can beat a 3% flat — or cost more |
| Hidden add-ons | ACH $3–10 · wire $5–30 · processing $1–5 · monthly minimums · early-termination 3–6% of facility | A $5 fee on a $1,000 invoice silently adds 0.5% |
The APR isn't "bad" — it's the price of cash flow, and for a lot of owner-operators that early cash is worth it. But seeing it annualized tells you when factoring every load earns its keep and when a faster-paying broker, QuickPay, or a line of credit is cheaper. Run your real numbers in the true-cost calculator, and check the rest of your margin with the take-home pay and break-even rate tools.
Estimates and modeled benchmarks for planning only — not financial advice, and not a quote. Confirm exact terms with the factor. Last updated June 2026. Built by TruckMargin.
Fees run 1.5–5% per invoice (2–3.5% typical for owner-operators). Annualized, that's roughly a 24–60% effective APR — a 2% fee on a 30-day invoice ≈ 24% APR; 5% on 30 days ≈ 61%.
Effective rate × 365 ÷ days-to-pay. A 3% fee on a 40-day invoice = 3% × 365 ÷ 40 ≈ 27.4% APR. ACH/monthly fees raise it; using the advance as the denominator raises it ~3–6%.
No — it's a transparent, math-backed model built from published fee ranges, not proprietary or negotiated company rates. Every benchmark shows its assumptions (fee %, advance, reserve, recourse, days-to-pay, formula).
The fee buys only a few weeks of early payment, so the real cost of the money is the fee spread over those weeks. A flat 3% to avoid a 40-day wait is ≈ 27% APR.
Under ~3.5% recourse with no hidden ACH or monthly-minimum fees. New authority ~3–4%, established solo ~2.5–3.5%, small fleet ~1.5–3%. Non-recourse adds ~0.5–1.5%.
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