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Factoring rates calculator: the true cost per $10,000

At Outgo's published owner-operator rate of 3%, factoring $10,000 of invoices costs $300 before any payout fees; a contract that adds a 1% advance fee to a 2.5% rate costs $350. Sources: Outgo rate-match page; 2019 trucking factoring contract, SEC EDGAR.

Cost per $10,000 invoiced

$300

$450 a month on $15,000, an effective 3.00%.

Your number against published rates

Cost per $10,000 at your monthly volume and payout count, cheapest first. Tiers that need more volume than you entered are left out.

How the math works

Rate: the percentage times what you invoice.
Per-invoice and payout fees: flat dollars times how many invoices and payouts you have a month. Outgo, for example, lists "Per ACH transfer No Fees Per wire transfer $20.00" (outgo.dat.com).
Monthly minimum: if the fees come to less than the minimum, you pay the minimum. One signed agreement on EDGAR set a $690 minimum "regardless of whether or not the CLIENT offers invoices for purchase" (Riviera Finance, 2006).
Late-pay (aging) charges: some contracts charge again for each period an invoice stays unpaid: "a further charge of one and one-half percent for each fifteen-day period in which each of these invoices is outstanding" (Porter Capital, 2009). The calculator adds the charge for every full or partial period after the start day.
Not counted: the advance and reserve set when the money reaches you. They aren't fees, so they're left out of the total. If a contract charges a fee on the advance (like the 2019 one below), put it in the rate.

"a factoring fee ... equal to 2.50% of the gross face value ... and an advance fee of 1% of the purchased amount. Additionally, on past due Purchased Receivables ... a default discount fee ... of 0.027% per day."
Freight Connections, Inc. (trucking/LTL), Note 6, audited financials (EX-99.1). The 1% advance fee is why this preset uses 3.5%.

Published factoring rates on one truck's month

Cost per $10,000 at each published rate, for a carrier invoicing $15,000 a month in 10 loads, cheapest first. Outgo's owner-operator line adds $20 wires four times a month, as listed on its site. Outgo's fleet tier ($18,000 a month and up) is left out. Intro rates (grey) are temporary.

Your contract decides the real number. Ask the factor in writing for every fee in this calculator before you sign, and read how to get out of a factoring contract first. Longer read: what freight factoring really costs. Not financial advice.

Questions

How much does freight factoring cost per $10,000?

$300 at Outgo's published 3% owner-operator rate, before payout fees. A 2019 trucking contract filed with the SEC added a 1% advance fee to a 2.5% rate, which comes to $350.

What factoring rates do companies publish?

From 1.5% (Porter Freight Funding, intro, first 60 days; needs a 1-year recourse contract and 95% advance) to 3%. Most companies we checked publish no rate at all.

How do payout fees change the cost?

A flat fee per payout adds up when invoices are small. At four $20 wires a month on $15,000 of invoices, Outgo's wire fee adds about $53.33 per $10,000 on top of the rate; ACH payouts are free.

What else should I put in the calculator?

Any per-invoice fee, a monthly minimum, and late-pay (aging) charges if brokers pay slowly. They are under "More fees" in the form above.