Factoring and Dispatch Fees
Factoring takes 2 to 5 percent of gross for fast cash. Dispatch takes 5 to 10 percent for booking and paperwork. Together at full rates they can eat $0.55 per mile. Here is the worked math plus the keep-or-drop test for each.
What does freight factoring cost?
Work it on a $5,000 load over 1,000 total miles at 3 percent non-recourse: $5,000 × 0.03 = $150, or $0.15 per mile. At 5 percent it is $250, or $0.25 per mile. Read the contract for the add-ons that change the real rate: per-invoice fees, ACH or wire fees, monthly minimums, and reserve holds. Recourse factoring costs less until a broker fails to pay, then the invoice comes back to you. Non-recourse costs more and covers most credit defaults, but exclusions still apply. Price both in the load profit calculator with the factoring percent typed in, and compare the fee against a fuel advance plus 30 day wait before you sign.
What does a dispatch service cost?
Work the same $5,000 load at 8 percent dispatch: $5,000 × 0.08 = $400, or $0.40 per mile on 1,000 miles. Net pay drops to $4,600 before factoring, fuel, and tolls. A good dispatcher earns it by cutting deadhead, negotiating accessorials, and keeping you loaded while you drive. A bad one books cheap freight fast and bills the same percent. Test yours monthly: compare your all-miles RPM with and without the fee against your cost per mile. If the fee tops your margin two months straight, the dispatcher earns more from your truck than you do. Read the rate per mile math before the renewal call.
When does each service pay for itself?
Factoring pays when 24 hour funding protects miles. If fast cash lets you take the next load instead of waiting on a 30 day broker pay plus a fuel advance at 5 percent, the 3 percent fee wins. It also pays when you run new brokers the factor already vets for credit, since one unpaid $5,000 invoice costs more than a year of fees. Dispatch pays when your deadhead drops and your accessorial collection rises enough to cover the percent. Track both for 60 days: deadhead share, detention collected, and net all-miles RPM. Self dispatch with two steady lanes plus a fuel card often beats full service fees for experienced operators. New authority drivers who cannot book and drive at once get the most from short term dispatch while they learn the boards.
How do fees change the load verdict?
Stack them on the $5,000 example: $150 factoring plus $400 dispatch = $550 off the top. Gross $5,000 becomes $4,450 before fuel, tolls, and lumper. On 1,000 miles that is $4.45 net of fees, then fuel near $1.00 per mile leaves $3.45, then fixed and pay leave the real margin. A load that looked like $2.71 loaded RPM at quote time nets near $2.30 all-miles after fees in the calculator. Rule: never accept a load where fees plus cost exceed 85 percent of gross unless the reload is confirmed and priced. Keep pay targets separate from profit so fees cannot quietly eat your wage.
By Srikanth M. · Last reviewed September 27, 2026. Planning estimates only, not tax or financial advice. Read every contract before signing. Method: sources and methodology.
Factoring and dispatch FAQ
What does freight factoring cost?
Non-recourse factoring runs 2 to 5 percent of gross. On a $5,000 load at 3 percent, the fee is $150, which is $0.15 per mile on 1,000 total miles.
What does a dispatch service cost?
Dispatchers charge 5 to 10 percent of gross. On a $5,000 load at 8 percent, the fee is $400, or $0.40 per mile on 1,000 total miles.
When does factoring pay for itself?
When faster cash lets you run more paid miles or skip advances. If 24-hour funding protects one extra load a month, the fee beats the fuel advance and the lost day.
When should I drop dispatch?
When you book steady lanes yourself and the fee tops your margin. At $0.40 per mile against a $0.30 margin, the dispatcher earns more from your truck than you do.