Understanding what goes into a factoring rate is helpful when shopping around. The biggest factors that influence a freight factoring rate include the following:
How long a trucking company has been in business
Number of active trucks it operates
The volume of freight hauled
Total monthly revenue
The length of the factoring agreement
Whether it’s a recourse or non-recourse factoring program
Typically, factoring costs are lower for established trucking companies that have been in business for multiple years, haul a large volume of freight and have high monthly revenue.