Interstate Capital Announces Fuel Advance Price Cut

SANTA TERESA, NM. MARCH 25, 2014. Interstate Capital Corporation, one of North America’s leading transportation factoring companies, announced today a sweeping price reduction on fuel advances, a financial product that provides fuel money for truckers when they pick up a load. According to Tony Furman, Interstate Capital’s president, “Interstate Capital was among the first transportation factoring companies in the U.S. and Canada to offer fuel advances.” Five years ago, it was virtually unheard of for factoring companies to advance funds to truckers before delivery of freight was verified.

“When we first introduced fuel advances, our standard fee was $49.99 and we could hardly keep up with demand”, recounts Furman. “With Interstate’s recent integration of GPS load-tracking technology, unveiled in January 2014, we are now in the position to pass labor savings along to our clients with fuel advance fees ranging from only $14.99 – $24.99.  Our fuel advance fees are now 50% to 70% lower than our standard fee five years ago”.

Even to this day, most factoring companies avoid the practice of providing fuel advances to truckers, primarily due to the risks and costs associated with advancing cash before delivery of freight.  The practice of making fuel advances available to truckers exposes factoring companies and freight brokers to the risks that freight may be delivered late, damaged, or not at all. Any of those scenarios lead to the very real possibility that funds (advanced) to a trucker will not be recovered or will be only partially recovered.  Relative to risks associated with factoring freight bills, fuel advances–typically 50% of the freight bill amount–are a much bigger gamble and, according to Furman, “not for the faint of heart among factoring companies”.

“Lots of bad things can happen between ‘Point A’ and ‘Point B'”, Furman acknowledges. “You never know if freight will actually be delivered–due to circumstances within or totally beyond the control of the trucker.  Five years ago, we viewed the practice of offering fuel advances as a risky and labor-intensive business imperative, and we priced fuel advances accordingly.” Today, Intestate Capital’s use of both proprietary and licensed technology has made fuel advances less risky and less labor intensive.

When Interstate Capital announced its roll-out of GPS technology to reduce its labor costs, it set in motion a chain reaction of events which resulted in the advent of its new fuel advance pricing model. “The integration of the GPS technology,” Furman adds, “in addition to Interstate’s low cost of capital and economies of scale, permit us to compete profitably against freight brokers for truckers’ fuel advance needs. Not only is Interstate Capital’s $14.99 fuel advance far cheaper than most every freight broker, but we deliver funds to carriers in as little as an hour after freight is picked up.” Furman predicts the next evolution in the world of freight bill factoring will be fuel advances in increasingly higher percentages of the freight bill.

“Interstate Capital has a product in the final stages of development that we hope to roll out very soon, which will pay qualified truckers up to 100% their freight charges within an hour of freight pick up,” Furman added. “We hope to make a formal announcement introducing this ground-breaking feature in the very near future.”

The Interstate Capital Group of Companies is a leading marketer of accounts receivable and freight bill factoring, fuel cards, freight matching, freight broker credit reports, property broker bonds, fuel advances, and freight brokerage services.  Founded in 1993, Interstate Capital has provided $ billions of funding for over 5,000 motor carriers and other small businesses in the U.S., Canada, and Mexico.

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Interstate Capital Announces Fuel Advance Price Cut

Interstate Capital Re-Brands World’s Largest Free Matching Site

EL PASO, TX APRIL 14. Interstate Capital, one of the largest independent funders of truckers in the U.S., revealed today its plan to re-brand it subsidiary, Check Freight Broker, LLC, better known in the transportation industry as “CheckFreightBroker.com” (“CFB”).  Effective immediately, the CFB brand will be co-branded, FreeFreightSearch.com.

Tony Furman, CEO of CFB explains, “In 2009, the CFB brand became synonymous with transportation credit reports for truckers.” As the business expanded into free freight matching, gradually the CFB name became obsolete. “I would estimate than 90% of our members currently use the site first and foremost, to find freight for free and secondarily, to ensure they’ll get paid by freight brokers,” Furman added. “Just three years ago, it was the other way around.”

To avoid confusion among its over 16,000 members and the rest of the transportation community, CFB will not immediately drop that identity, but site visitors will notice the the CFB identity along-side the  FreeFreightSearch.com branding. Eventually, when the co-branding campaign is complete, Furman plans to drop the CFB identity completely.

Furman attributes the site’s growth to truckers becoming smarter comparison shoppers. In 2011, CFB launched a sister site, CompareLoadBoards.com, to make comparison shopping easier for truckers.  At the time, trucking companies were paying many thousands of dollars to access competing, larger freight matching sites (“internet load boards”). They still do–a fact that provides Furman with fierce resolve to educate the trucking community about free load boards.  CompareLoadBoards.com illustrates the differences among load boards through use of an easy-to-understand comparison chart.  Furman claims, “The side-by-side comparison chart featured on the CompareLoadBoards.com site drives truckers to the CFB site by the thousands.”

“One of the most frequently asked questions is, ‘How do you make money?’ New site visitors are weary about being ripped off or eventually being charged to access the site’s premium features,” Furman explains. “Our biggest challenge is convincing truckers that it’s no scam. Our business model works because it’s free, not despite it. Our site is 100% advertiser supported, just like Yahoo, Yelp, and Facebook. We make money because our advertisers make money. Our advertisers count on us to deliver a growing, targeted, niche audience–and we do. It’s all about building user engagement on the site and building site metrics. We do that by providing access to all our valuable features for free,” he added.

By contrast, other major load boards charge their members thousands of dollars to access their sites. While some of the other major load boards boast larger membership rolls than CFB, its 16,000 members have searched over 40 million truckloads of freight and visit over a million of the site’s pages annually, making it by far the world’s largest free load board. CFB projects it will have over 25,000 registered members in 2014. According to Furman, CFB is in its infancy and still only scratching the surface of the free freight matching market after nearly five years in business.

CFB is a wholly-owned subsidiary of Interstate Capital, a leading transportation factoring company that has provided $ billions of funding for over 6,000 motor carriers, freight brokers, wholesale distributors, manufacturers, and services businesses for over 21 years. Interstate and affiliates maintain offices in El Paso, Texas, New Mexico, California, and Arkansas.

Interstate Capital Re-Brands World’s Largest Free Matching Site