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 by Industry
In 2026, you can expect these typical ranges:
- Transportation/Trucking: 1.5% - 5%
- Staffing: 2% - 6%
- Healthcare: 3% - 7%
- Construction: 2.5% - 6%
- General B2B: 2% - 5%
Get your personalized rate
Check eligibility to see what rate you qualify for.
Factors That Affect Your Rate
Several variables influence the rate you'll receive:
- 1Your customer's creditworthiness — Better credit = lower rates
- 2Invoice volume — Higher volumes often qualify for discounts
- 3Industry — Some industries are considered lower risk
- 4Payment terms — Shorter terms typically mean lower fees
- 5Contract length — Long-term agreements may include rate discounts
Hidden Fees to Watch For
Always ask about these potential additional costs:
- Application or setup fees
- Monthly minimums
- ACH or wire transfer fees
- Invoice processing fees
- Termination or early exit fees
- Credit check fees
At Factoring Express, we believe in transparent pricing with no hidden fees. What we quote is what you pay.
Next Steps
Ready to see what rate you qualify for? Complete our 2-minute eligibility check to get a personalized quote with no obligation.