Free trucking tools / Factoring Fee Calculator
Factoring Fee Calculator
Factoring gets you paid fast, but the fee comes off the top of every invoice. Comparing factoring companies is easier when you see the dollars and the effective yearly cost side by side.
Enter the invoice amount, the fee percentage, the reserve (the share held back until the broker pays), and how many days the broker usually takes to pay. The calculator shows your upfront advance, the fee, the reserve you get later, your total net, and the fee expressed as an annual rate.
Check any broker free (authority, BMC-84 bond, surety). If a load goes unpaid, get a ready-to-send demand letter and bond-claim packet: $9 with code LAUNCH10 through Oct 29 (then $19).
Frequently asked questions
What is a factoring reserve?
Some factoring companies advance only part of the invoice and hold the rest as a reserve until the broker pays. The reserve, minus the fee, is released to you later.
What is the difference between recourse and non-recourse factoring?
With recourse factoring you must buy back an invoice the broker does not pay. Non-recourse shifts some of that risk to the factor, usually only for broker insolvency, and often costs more. Read your agreement for the exact terms.
Why show an annual rate?
A small percentage on a short wait can equal a high yearly cost. The annual rate makes it easier to compare factoring with other options, like a line of credit.
What if a factored invoice goes unpaid?
You or your factor can demand payment and file a claim against the broker BMC-84 bond or BMC-85 trust. Check the broker first and build the claim packet if needed.
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Results are estimates for planning. Check your rate confirmation and agreements for the terms that apply to you.
Not legal advice. This is a document-preparation tool, not a law firm. Results aren't guaranteed. Verify all info with FMCSA and consult an attorney for legal questions.