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Freight Factoring Cost Calculator: Recourse vs Non-Recourse vs Quick Pay

Brokers often take 30–60 days to pay, and factoring turns an invoice into cash today for a fee, usually 1–5% of the invoice. A few percent sounds small, but on a 30-day wait 3% works out at roughly 38% a year, and per-invoice ACH or wire fees add up fast. Put in your numbers to see what each option leaves in your hand, what it costs a month and a year, and whether paying extra for non-recourse makes sense.

Rates and fees are yours: take them from your factoring agreement or quotes. Annual cost is a simple comparison (fee ÷ cash received × 365 ÷ days you'd wait), not a quoted APR. Not financial advice.

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The options

  • Waiting for the broker: you keep the full invoice but need your own cash to cover fuel and bills in the meantime.
  • Broker quick pay: some brokers pay within days for a 1–5% fee. No contract, but no protection either.
  • Recourse factoring: cheaper (often 1–3%), but if the broker doesn't pay within the agreed window (often 30–90 days) you buy the invoice back.
  • Non-recourse factoring: dearer (often 2–5%). It usually only covers a broker going out of business, not disputes over the load.

Fees to check in your agreement

  • Whether the rate is charged once per invoice or again every 30 days the broker takes.
  • ACH, wire and same-day funding fees, monthly minimums, set-up and cancellation fees, and how the reserve is paid back.

Checking a load before you book it? Try the load profit calculator.

Questions

How much does freight factoring cost?

Most carriers pay about 1–5% of each invoice, commonly 2–3.5% for established carriers, plus per-transfer fees. Non-recourse costs more than recourse.

Is recourse or non-recourse factoring better?

Recourse is cheaper but you carry the risk if a broker doesn't pay. Non-recourse is only worth the extra if you expect brokers to go bust more often than the premium implies, and it rarely covers disputes.

Is quick pay cheaper than factoring?

Often, when the broker offers it: a 1–2% quick pay fee with no transfer fees can beat factoring for that load. Compare both on the same invoice above.