Understanding factoring rates is crucial for making informed financing decisions. This guide breaks down how factoring fees work and what affects your rates.
How Factoring Rates Are Calculated
Most factoring companies charge based on one of these models:
Flat fee: A fixed percentage per invoice (e.g., 3%)
Tiered rates: Fees that vary based on how long it takes your customer to pay
Variable rates: Rates that fluctuate based on market conditions
Typical Rate Ranges
In 2026, you can expect:
Transportation/Trucking: 1.5% - 5%
Staffing: 2% - 6%
Healthcare: 3% - 7%
General B2B: 2% - 5%
Factors That Affect Your Rate
Several variables influence the rate you'll receive:
Your customer's creditworthiness — Better credit = lower rates
Invoice volume — Higher volumes often qualify for discounts
Industry — Some industries are considered lower risk
Payment terms — Shorter terms typically mean lower fees
Contract length — Long-term agreements may include rate discounts
Hidden Fees to Watch For
Ask about:
Application or setup fees
Monthly minimums
ACH or wire transfer fees
Invoice processing fees
Termination fees
At Factoring Express, we believe in transparent pricing with no hidden fees.