Rates today · updated every business day
Factoring rates today
The short answer
Invoice factoring fees commonly run about 1% to 5% per 30 days an invoice is open, and most are flat fees that do not move with interest rates. The benchmarks that price larger AR lines are the prime rate, 7%, and SOFR, 3.89%, as of November 9, 2026.
Benchmarks right now
Sources: Federal Reserve H.15 (prime); New York Fed (SOFR, fed funds). Content from the New York Fed subject to the Terms of Use at newyorkfed.org. This site is not affiliated with the New York Fed.
What a factoring fee costs next to prime
A factoring fee is charged on the invoice's face value, but you only receive the advance. To compare it with a loan, turn it into an annual rate on the cash you actually get. This table assumes an 85% advance and the invoice open 30 days, with simple annualizing (fee × 365 ÷ 30).
| Fee per 30 days | Annual, on face | Annual, on cash advanced | Same as |
|---|---|---|---|
| 1% | 12.2% | 14.3% | prime + 7.3 |
| 1.5% | 18.3% | 21.5% | prime + 14.5 |
| 2% | 24.3% | 28.6% | prime + 21.6 |
| 2.5% | 30.4% | 35.8% | prime + 28.8 |
| 3% | 36.5% | 42.9% | prime + 35.9 |
| 4% | 48.7% | 57.3% | prime + 50.3 |
| 5% | 60.8% | 71.6% | prime + 64.6 |
Your own numbers will differ with the advance rate, how long customers take to pay and the fee structure (flat, tiered or daily). Run them in the factoring cost calculator, or paste up to three offers into the proposal decoder.
What prime-plus and SOFR-plus quotes mean today
Larger receivables facilities and asset-based lines often charge interest on the money you actually draw, as an index plus a margin. Here is what common margins add up to with today's benchmarks.
| Margin | Prime + margin | SOFR + margin |
|---|---|---|
| + 1 points | 8% | 4.89% |
| + 2 points | 9% | 5.89% |
| + 3 points | 10% | 6.89% |
| + 4 points | 11% | 7.89% |
| + 6 points | 13% | 9.89% |
Which kinds of AR financing move with rates?
- Flat-fee invoice factoring (most deals under $3MM): a set percentage per 30 or 10 days. Does not move with prime, though new offers get priced off what the funder's own money costs.
- Prime-plus factoring: some factors charge a small flat fee plus interest at prime plus a margin on the advance. Your cost moves every time prime does.
- Asset-based lines (ABL): usually SOFR or prime plus a margin on the outstanding balance, with unused-line and field-exam fees. See factoring vs. ABL.
- Merchant cash advances: a fixed factor rate that has nothing to do with prime and usually costs far more. Compare in the MCA vs. factoring tool.
Put these rates on your site
A free, live ticker of prime, SOFR and fed funds in this site's colors, with a link back here. Paste this where you want it to appear:
<iframe src="https://factorroute.com/embed/rates?ids=PRIME,SOFR,FF_UPPER" width="100%" height="150" style="border:0" title="Rates from FactorRoute" loading="lazy"></iframe>Developers can read the same numbers as JSON from /api/live, documented on the open data page, or ask for them through our MCP server.
Questions people ask
What is the prime rate today?
The bank prime loan rate is 7% as of November 9, 2026, per the Federal Reserve's H.15 release. Banks have set prime at the top of the fed funds target range plus 3 points for decades, so it changes when the Fed moves rates.
Do factoring fees go up and down with prime?
Most small and mid-size factoring fees are flat: a set percentage per 30 days or per 10 days the invoice is open, which does not move with prime. Some larger facilities price the cost of funds as prime or SOFR plus a margin, so their cost moves with the index. Your proposal will say which one you have.
How do I compare a factoring fee with a bank line?
Turn the fee into an annual rate on the cash you actually receive. At an 85% advance, a 2% fee per 30 days works out to about 28.6% a year simple, or roughly prime + 21.6 today. Our factoring cost calculator does this for any fee schedule.
What is SOFR and why does it matter for AR financing?
SOFR, the Secured Overnight Financing Rate, is the benchmark the New York Fed publishes each business day; it is 3.89% for November 10, 2026. Asset-based lines and larger receivables facilities often price as SOFR plus a margin, so SOFR sets the floor of what that money costs.
How often is this page updated?
The benchmark numbers update automatically every business day from the Federal Reserve and the New York Fed. Fee ranges and examples change only when the market does, and the page shows the date of every figure.
Rates are the easy part.
What you actually pay depends on your customers and your terms. Two minutes, no credit pull, and a specialist tells you what a funder would offer.