Today's Invoice Factoring Rates, June 2026

As of June 21, 2026, B2B factoring fees run 0.50–3.50% per 30 days depending on monthly volume, industry, debtor credit quality, and recourse vs non-recourse structure. Advance rates are 80–95% of eligible invoice face, with the 5–20% reserve released net of fees when the debtor pays. High-volume, investment-grade-debtor programs price near 0.50–1.25%; small or sub-prime debtor books price 2.00–3.50%.

The fee is charged against the invoice face per period outstanding, typically per 30 days. Example: 1.50% for days 1–30. On a $100,000 invoice paid in 30 days at 1.50%, the fee is $1,500. Some programs use a flat discount; others a per-diem accrual. Effective APR looks high because the dollar fee covers a short 30–60 day hold, but factoring is priced as recurring working-capital, not a term loan.

Recourse factoring (cheaper, 0.50–2.50%) means you buy back unpaid invoices if the debtor never pays, credit risk stays with you. Non-recourse factoring (1.50–3.50%) shifts debtor-insolvency risk to the factor, but only for true insolvency/bankruptcy, not disputes or slow-pay. Most B2B programs are recourse; non-recourse suits concentrated or higher-risk debtor books.

Advance rates run 80–95% of eligible invoice face. Staffing and transportation often see 90–95%; general B2B services and manufacturing 80–90%; construction and progress-billing 70–85% due to lien and offset risk. The held reserve (5–20%) is released when the debtor pays, net of accrued fees. Advance is set by industry, debtor concentration, dilution history, and verification quality.

No. Factoring is the sale of your accounts receivable at a discount, not a loan against collateral. There is no fixed term or amortization, and funding scales with invoice volume, recurring, ongoing financing that grows with your sales. Because it is a sale of an asset, it is typically off-balance-sheet for the receivable and does not add term debt. An asset-based line of credit (ABL) is the loan alternative.

Heaviest B2B users: staffing agencies, freight/trucking and transportation, commercial manufacturing and distribution, oilfield and energy services, government contractors, IT and professional services with net-30/60/90 terms, and wholesale/B2B suppliers. The common thread is creditworthy commercial or government debtors with a gap between delivery and payment. This page covers B2B/commercial factoring only, not consumer lending.

Facility sizes run from roughly $25,000/month for small spot programs up to $20M+/month for institutional staffing and transportation books. Many factors prefer a minimum monthly volume of $50,000–$100,000. Spot/single-invoice factoring prices wider (often 2.50–4.00%) because there is no volume commitment. Larger, stabilized receivable books migrate to an asset-based line of credit at a lower all-in cost.

An ABL line is usually cheaper all-in once your eligible AR is stable and above roughly $1M–$2M, because it prices as SOFR + a spread on the drawn balance rather than a per-invoice discount. Factoring wins when you need fast onboarding, outsourced collections/credit, off-balance-sheet treatment, or you are too early-stage for a bank ABL. Many companies factor first, then graduate to ABL.