Factoring Fee Calculator

See exactly how much freight factoring costs your business per month and per year.

What you enter

DispatchTool's built-in invoicing lets you bill brokers directly and keep 100% of your revenue.

Frequently Asked Questions

What is freight factoring?

Freight factoring is selling your unpaid invoices to a factoring company for immediate cash (minus a fee). Instead of waiting 30-90 days for broker payment, you get paid in 24-48 hours.

What is a typical factoring rate?

Rates range from 1-5% of the invoice amount. Recourse factoring is cheaper (1-3%) but you absorb non-payment risk. Non-recourse (2-5%) protects you from broker default.

Is freight factoring worth it?

For new carriers with cash flow issues, factoring can keep you running. But at 3% on $500K annual revenue, you're paying $15K/year. As you grow, direct invoicing is more profitable.