Freight Factoring Rates: How They Work and What MJN Charges
Freight factoring rates determine how much you pay to convert an unpaid invoice into same-day pay. Rates vary by structure (variable or flat), invoice volume, and your customers' credit history. MJN Services publishes its complete fee schedule so you know exactly what you are paying before you sign. Rates are published in writing.
This page covers how factoring rate structures work, what drives rate differences across providers, and MJN's specific rate schedule. Use the links below to estimate your cost with our fee calculator, or work through our eight-question comparison checklist to evaluate providers on the criteria that matter for small carriers and owner-operators.
MJN Services Factoring Rate Schedule
| Rate Type | Rate | Details |
|---|---|---|
| Variable rate | 1.5% | Adjusts based on shipper payment timing |
| Flat rate | 3% | Fixed for 60 days regardless of payment timing |
| Advance rate | Up to 95% | Percentage of invoice paid same day you submit |
| Free trial | First 30 days | No fee during initial trial period |
| Application fee | None | No fee to apply or set up your account |
| ACH transfer fee | None | No per-transfer fee on your funding |
| Credit reporting fee | None | No fee to run credit on your customers |
| Invoice processing fee | None | No per-invoice submission fee |
| Minimum monthly fee | $200/month | Applies after 90 days; waived in months where calculated fees exceed this amount |
| Submission cutoff | 1:00 PM MST | Invoice submitted by this time receives same-day ACH from MJN |
What Drives Factoring Rates?
Factoring rates move on a few known variables. Here is what drives them across the industry, and where MJN's published schedule already answers the question.
Invoice volume: Many factoring companies price by monthly volume, so a small fleet pays more than a large one. MJN does not. The schedule above is the same rate for a one-truck operation as for a large fleet, starting at 1.5%.
Your credit is not the question. Your customer’s is. The factoring company is extending credit based on your shipper’s or broker’s ability to pay, not yours, so a thin credit file or no bank line does not rule you out. Customers with strong payment history lower the risk and can lead to lower rates.
Recourse vs. non-recourse: Recourse carries the lower rate, because you remain responsible if the customer does not pay after the recourse period. Non-recourse moves that risk to the factoring company for an additional fee. MJN offers both, so you can match the arrangement to each customer.
Rate structure: Variable rates adjust based on how quickly your customer pays. Flat rates are fixed for the recourse period regardless of payment timing. Variable rates cost less when customers pay fast; flat rates provide predictability when payment timing is uncertain.
Advance rate: The advance rate changes when you get your money, not what it costs. The factoring fee is the same either way. A higher advance rate simply means less is held in reserve until your customer pays.
Related guides and tools
Factoring Rates FAQ
What are typical freight factoring rates?
MJN Services charges 1.5% variable or 3% flat for 60 days terms, the same rate for one truck as for a fleet. Across the industry, freight factoring rates typically range from 1.5% up to 5% of the invoice value, and vary by monthly invoice volume, customer creditworthiness, and whether the arrangement is recourse or non-recourse. MJN Services offers a variable rate starting at 1.5% and a flat rate of 3% for 60 days terms, and does not price by fleet size: an owner-operator pays the same published rate as a large fleet. Rates are published in writing.
What is the difference between variable and flat factoring rates?
A variable rate (starting at 1.5% at MJN Services) adjusts based on how long the shipper takes to pay. A flat rate (3% for 60 days at MJN Services) is fixed regardless of payment timing. Variable rates cost less when shippers pay quickly; flat rates provide cost predictability for slower-paying customers.
How does advance rate affect factoring cost?
The advance rate is the percentage of the invoice MJN advances. MJN Services advances up to 95% of the approved invoice value. The factoring fee is deducted at funding, and the remainder is held in reserve. 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.
What fees should I expect beyond the factoring rate?
Beyond the factoring rate (1.5% variable or 3% flat at MJN Services), the fees to ask any factoring company about are application or setup, ACH transfer, credit check, and minimum monthly fees. At MJN there are no application fees, no ACH transfer fees, no credit reporting fees, and no invoice processing fees. The minimum monthly fee is the one that applies: none for the first 90 days, then $200 per month in any month where your calculated fees fall below that amount. Rates are published in writing.
Does MJN Services offer a free trial?
Yes. MJN Services offers 30 days free to new clients. Submit your invoice by 1:00 PM MST and MJN issues your ACH payment the same day during the trial and after. The initial contract period is 90 days.
Ready to See Your Factoring Rate?
Advance rates up to 95%. MJN issues your ACH payment the same day you submit. Rates are published in writing. Apply today.