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Carrier Factoring Elimination & DSO Reduction Calculator

Factoring fees of 2% to 5% on gross revenue are often optional when invoicing speed and DSO improve. Model factoring cost today versus net profit retained with same-day touchless billing and sub-18-day DSO.

Annual Gross Freight Revenue ($) Average Factoring Fee (% of gross) Current Days Sales Outstanding (DSO) Target DSO with Touchless Billing (days) Weighted Average Cost of Capital (%)

Annual factoring fee bleed

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Working capital benefit from DSO reduction (annualized)

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Combined annual net benefit (eliminate factor + WC)

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