What freight factoring really costs (it's not the rate on the flyer)

The percent on the flyer is the part they want you comparing. It's also the smallest cost in the deal for most owner-operators. The fees that actually move your number are the ones bundled around it.

The big one is the monthly minimum. If the contract sets a minimum factored volume and you don't hit it — slow month, home time, breakdown — you pay the rate on the minimum anyway, which quietly inflates your effective percentage on a bad month exactly when you can least afford it. Then layer in same-day funding surcharges, wire fees versus free ACH, per-invoice fees, and a monthly portal charge. A 'cheap' 1.5% deal with a fat minimum and same-day fees can cost more than a 3% deal with none of that.

The honest way to compare is total dollars out per month at your real volume, not the headline percent. That's the number the flyer never shows you.

The short answers

How much does freight factoring cost?

The advertised rate is typically a small percent per invoice, but the true cost includes monthly minimums, same-day funding fees, ACH or wire charges, invoice upload fees, and a reserve held back. The flyer rate is the floor, not the price.

What are hidden fees in a factoring contract?

Watch for monthly minimum volume penalties, per-invoice processing fees, same-day funding surcharges, wire fees, monthly software or portal fees, and termination penalties. Each one is small on its own and stacks fast.

What to hold onto

• The advertised percent is the floor, not the price.
• Monthly minimums punish your slow months hardest.
• Same-day funding and wire fees can dwarf the base rate.
• Compare total dollars out per month at your actual volume.