Freight Factoring Rates: How They Work and What MJN Charges
Freight factoring rates determine how much you pay to convert an unpaid invoice into same-day pay. Rates vary by structure (variable or flat), advance percentage, invoice volume, and your customers' credit history. MJN Services publishes its complete fee schedule so you know exactly what you are paying before you sign. Rates are published in writing.
This page covers how factoring rate structures work, what drives rate differences across providers, and MJN's specific rate schedule. Use the links below to estimate your cost with our fee calculator or compare providers using the criteria that matter for small carriers and owner-operators.
MJN Services Factoring Rate Schedule
| Rate Type | Rate | Details |
|---|---|---|
| Variable rate | 1.5% | Adjusts based on shipper payment timing |
| Flat rate | 3% | Fixed for 60 days regardless of payment timing |
| Advance rate | Up to 95% | Percentage of invoice paid same day you submit |
| Free trial | First 30 days | No fee during initial trial period |
| Minimum monthly fee | $200/month | Applies after 90 days; waived in months where calculated fees exceed this amount |
| Submission cutoff | 1:00 PM MST | Invoice submitted by this time receives same-day ACH from MJN |
What Drives Factoring Rates?
Factoring rates are not one-size-fits-all. The rate you pay depends on several factors that factoring companies evaluate before making an offer.
Invoice volume: Carriers that factor higher monthly volumes often qualify for lower rates. Factoring companies spread their administrative costs across more invoices at higher volume.
Customer creditworthiness: The factoring company is extending credit based on your shipper's or broker's ability to pay, not yours. Customers with strong payment history lower the risk and can lead to lower rates.
Recourse vs. non-recourse: Recourse factoring (where you are responsible if the customer does not pay after the recourse period) typically carries lower rates than non-recourse factoring, where the factoring company absorbs the credit risk.
Rate structure: Variable rates adjust based on how quickly your customer pays. Flat rates are fixed for the recourse period regardless of payment timing. Variable rates cost less when customers pay fast; flat rates provide predictability when payment timing is uncertain.
Advance rate: The percentage of the invoice you receive upfront affects your cash flow but not always your factoring rate directly. A higher advance rate means more cash immediately; the reserve is released after your customer pays.
Related guides and tools
Factoring Rates FAQ
What are typical freight factoring rates?
Freight factoring rates typically range from a low of 1.5% up to 5% of the invoice value, depending on the provider and arrangement. Rates vary by monthly invoice volume, customer creditworthiness, and whether the arrangement is recourse or non-recourse. MJN Services offers a variable rate starting at 1.5% and a flat rate of 3% for 60 days terms. Rates are published in writing.
What is the difference between variable and flat factoring rates?
A variable rate (starting at 1.5% at MJN Services) adjusts based on how long the shipper takes to pay. A flat rate (3% for 60 days at MJN Services) is fixed regardless of payment timing. Variable rates cost less when shippers pay quickly; flat rates provide cost predictability for slower-paying customers.
How does advance rate affect factoring cost?
The advance rate is the percentage of the invoice you receive upfront. MJN Services advances up to 95% of the approved invoice value. The remaining balance is held in reserve and released after the shipper pays, minus the factoring fee. Higher advance rates give you more cash upfront.
What fees should I expect beyond the factoring rate?
Beyond the factoring rate (1.5% variable or 3% flat at MJN Services), ask about setup fees, ACH transfer fees, credit check fees, and minimum monthly fees. At MJN Services, the first 90 days have no minimum monthly fee; after that, a minimum of $200 per month applies. Rates are published in writing.
Does MJN Services offer a free trial?
Yes. MJN Services offers 30 days free to new clients. Submit your invoice by 1:00 PM MST and MJN issues your ACH payment the same day during the trial and after. The initial contract period is 90 days.
Ready to See Your Factoring Rate?
Advance rates up to 95%. MJN issues your ACH payment the same day you submit. Rates are published in writing. Apply today.