Is Factoring Worth It for Trucking? (1.5% to 5%)
Yes, for most carriers. You pay 1.5% to 5% of the invoice and stop waiting 30 to 90 days for your money.
Whether that trade pays off depends on what you do with the cash. Take one more load a month with it and the fee is cheap. The carriers who get the most out of factoring are the ones who put the money straight back into the next load.
Below: what carriers actually pay, the fees that never make the headline rate, and how to tell which case you are in.
Trucking Factoring Rates: How Much Do Factoring Companies Charge?
Factoring companies charge a percentage of each invoice you sell. Where you land depends mostly on how much you factor:
- High-volume carriers (steady monthly invoicing): 1.5% to 3% per invoice
- Small fleets and owner-operators (lower volume): 3% to 5% per invoice
- Non-recourse arrangements (factor assumes non-payment risk): typically 0.5% to 1.5% higher than recourse rates
Here is what that looks like on real invoices at a 95% advance rate:
| Invoice Amount | Rate | Factoring Fee | You Receive at Funding | Reserve Held (5%) |
|---|---|---|---|---|
| $1,500 | 1.5% | $22.50 | $1,402.50 | $75.00 |
| $3,000 | 1.5% | $45.00 | $2,805.00 | $150.00 |
| $5,000 | 1.5% | $75.00 | $4,675.00 | $250.00 |
The reserve covers anything that can reduce what your customer actually pays, such as short pays and claims. After your customer pays the invoice, the reserve comes back to you, less any short pays, claims, or additional factoring fees.
You sell the invoice, get your advance within one business day, and move on to the next load. For a more detailed walkthrough, see how freight factoring works. To price your own invoice, use the freight factoring fee calculator.
Variable Rate or Flat Rate
Rates come in two structures. A variable rate climbs the longer an invoice sits unpaid, so it rewards customers who pay quickly. A flat rate holds for a set window, so you know the cost before you accept the load.
Which costs less depends on how fast your customers pay. Get the schedule in writing either way.
MJN offers both: a variable rate starting at 1.5%, and a flat 3% for 60-day terms. Both appear on the published rate and fee schedule.
Factoring Rates for Small Fleets and Owner-Operators (1 to 5 Trucks)
Run 1 to 5 trucks and you will see quotes in the 3% to 5% range. That is volume pricing. A factor spreads the same fixed cost across however many invoices you send, so eight invoices a month price higher than eighty.
Two things pull a small fleet toward the low end. Factor every month, so your volume is predictable. Haul for brokers and shippers who pay on time.
MJN starts at 1.5%. A one-truck owner-operator and a five-truck fleet read the same published rate schedule, so you know where your volume lands before you sign.
What Drives the Rate You Pay?
Five things move your rate:
- Monthly invoice volume. Higher volume usually means lower per-invoice rates. Factoring companies offer better pricing when they can spread fixed costs across more transactions.
- Customer creditworthiness. If your shippers and brokers have strong payment histories, the factoring company’s risk is lower, and your rate reflects that.
- Recourse vs. non-recourse. With recourse factoring, you are responsible if your customer does not pay within the agreed period (typically 60 to 90 days). Non-recourse factoring shifts that risk to the factor, which commands a premium.
- Payment terms. Shorter terms (net 30) cost less than longer terms (net 90) because the factoring company’s capital is tied up for less time.
- Contract length and exclusivity. Some companies offer lower rates for longer commitments or exclusive factoring agreements.
What Hidden Fees Should You Watch For?
Beyond the headline factoring rate, some companies charge additional fees that change your total cost. At MJN Services four of the seven below are simply none: no application or setup fee, no ACH transfer fee, no credit reporting fee, and no invoice processing fee. Ask any factoring company about each of these by name, and ask for the amount in writing:
| Fee | What it is |
|---|---|
| Setup or onboarding | One-time charge to open the relationship |
| ACH transfer | Per-transaction charge to receive your advance |
| Wire transfer | Same, when you want a wire instead of ACH |
| Invoice processing | Per-invoice charge on top of the percentage rate |
| Early termination | Penalty for leaving before the contract term ends |
| Credit check | Charge to evaluate a new customer’s credit |
| Minimum monthly fee | Owed in months when your factored volume falls short |
A $5 ACH fee on a $1,500 invoice adds a third of a percent to your real rate. Small numbers, every load.
At MJN Services, we publish our rate and fee schedule in writing. Rates start as low as 1.5%, the first 30 days are free, there is no monthly minimum for the first 90 days, and after that a $200 per month minimum applies in any month where your calculated fees come to less than that. Our published rate and fee schedule lists the terms you can review before signing, and the fee calculator estimates your fee and same-day advance on a specific invoice amount. If a factoring company is not willing to put every fee in writing, that is a signal to look elsewhere.
How to Calculate the True Cost
To compare factoring companies accurately, calculate the total cost per invoice, not just the headline rate:
Total cost = factoring rate + per-invoice fees + (monthly fees / number of invoices)
For example: a 1.5% factoring rate with a $5 ACH fee per invoice on a $2,000 invoice costs $35 per invoice (1.5% of $2,000 = $30 + $5 ACH fee), or a 1.75% effective rate. A monthly minimum only adds cost in low-volume months. At MJN Services there is no monthly minimum for the first 90 days; after that it is $200. If you factor 20 invoices per month your fees far exceed it, so it never applies; if you factor only 3 (about $90 in factoring fees at 1.5% on $2,000 invoices) the $200 minimum adds the $110 difference, or about $36.67 per invoice.
Volume cuts both ways here: it spreads the fixed fees thinner and it usually earns a lower base rate.
When Is Factoring Worth the Cost?
Run it on one load. A $3,000 load at 1.5% costs $45 in fees. If having that cash lets you book a load that nets $600, the $45 bought you $600.
Factoring earns its fee when:
- Waiting for payment prevents you from taking profitable loads
- You need fuel, maintenance, or payroll funding before invoices clear
- Chasing collections takes time away from running your business
- Growth is limited by working capital, not by available freight
- You are a new carrier without cash reserves to absorb 30 to 90 day payment cycles
At MJN Services, we have funded 26,000+ loads (as of 2026) and work with carriers who consistently tell us that predictable cash flow changed the trajectory of their business.
How Do You Choose the Right Partner?
What to check before you sign:
- Simple, published rates. Ask for the complete fee schedule before signing. If it takes a phone call to find out what you will actually pay, keep looking.
- Freight industry experience. A company that understands trucking knows about BOLs, FMCSA compliance, and carrier operations. MJN Services has served the trucking industry for 26+ years.
- Advance rates. Look for advance rates up to 95%. Lower advance rates mean more of your money is held until the customer pays.
- Funding speed. At MJN Services, invoices submitted by 1:00 PM MST are paid the same day via ACH. For carriers who need fast ACH funding, see our fast funding factoring program.
- Personal service. At MJN Services, carriers and agents have direct access to owners when decisions are needed. No call centers or automated systems.
- Flexible terms. Avoid companies that lock you into multi-year contracts. At MJN Services, initial contracts start at 3 months.
For a detailed comparison of factoring versus broker quick pay programs, see our guide on factoring vs. quick pay.
Related guides
- Freight factoring vs a bank loan: cost and speed compared
- How to choose the best factoring company for truckers
- The 7 factors that matter when choosing a factoring company
- MJN Services factoring rates and fee schedule: the published schedule behind the ranges on this page
- Freight factoring fee calculator: estimate your fee and same-day advance on a specific invoice amount
Ready to see if factoring makes sense for your operation? Explore our factoring programs to review rates and terms, or contact us for a straightforward conversation about your situation. With 127,000+ loads brokered and 39,000 approved carriers in our network (as of 2026), MJN Services has the experience and the personal service to help your trucking business grow.