Interstate Capital Subsidiary Begins Alpha Testing Accounts Payable Auction Platform

BidPay_Logo_v1

BidPay, Inc. (” BidPay®”), a New Mexico-based supply-chain finance technology start-up announced today it has begun alpha testing live data in its reverse-factoring payable auction platform. BidPay®, a trade-payable auction management firm, is part of the Interstate Capital Group of Companies. BidPay® markets a proprietary, cloud-based SAAS portal that delivers spot liquidity to credit-constrained suppliers of the world’s leading companies.

BidPay® CEO, and inventor of the BidPay® technology, Tony Furman, has over 30 years of experience in the banking and supply-chain finance industries. Furman is co-founder and President of Interstate Capital Corporation, one of North America’s leading independent accounts receivable factoring firms, discounting nearly $1 billion of receivables annually for companies throughout North America. BidPay® is a subsidiary of Interstate Capital.

BidPay® clients are companies that have access to credit and capital markets and annual revenues in the $1 billion to $5 billion range (“buyers”). Suppliers of  BidPay® ‘s clients may bid on the right to obtain prompt payment on qualified receivables directly from the buyer, and obtain spot liquidity without the need for external financing.

“BidPay® is attempting to capture receivable discounting opportunities for a large segment of suppliers all over the world that are unable to obtain financing from external funding sources”, explains Furman. Many suppliers, domestic and foreign, are unable to borrow against or factor their receivables, or are otherwise cash or credit-constrained. BidPay® is hoping to fill the financing void for those companies by electronically gathering supplier discount offers for its clients in an on-line auction platform and managing payable auctions.

BidPay® clients earn above-market, risk-free returns on their own funds employed in the early retirement of trade payables. At the same time, credit-constrained suppliers enjoy a new, flexible, and cost-effective source of spot liquidity that reduces supplier dependency on restrictive, costly, and often unavailable external sources of financing. BidPay®‘s has U.S. and international patents pending.

Furman estimates that worldwide demand for payable auctioning is so vast, BidPay® will be unable to capture all of the demand. “BidPay® will either license its platform or enter into franchise agreements with third parties to market the technology when and if demand outstrips our ability keep pace”, Furman commented. He adds, “We are evaluating strategic options to maximize the value of our IP, business model, and experience”. The BidPay®  payable auction portal will be publicly visible when the company transitions to beta testing late in 2014. Parties interested in viewing a live demo or inquiring about future licensing and franchising opportunities should contact Ernest Eisenberg,  BidPay®‘s President and Chief Operating Officer, at eeisenberg@interstatecapital.com.

Interstate Capital Subsidiary Begins Alpha Testing Accounts Payable Auction Platform

Interstate Capital Group of Companies Announces Record-Breaking April 2014 Results

Interstate Capital Corporation, one of North America’s largest independent factoring companies, announced record-breaking results for the month of April 2014.  Accounts receivable factoring is a financial transaction between a cash- or credit-constrained seller of a receivable (invoice) and an investor (a buyer of an invoice) at a discounted rate, in which the seller obtains immediate payment from the buyer, and the buyer waits to collect payment on the purchased invoice from the seller’s customer.

On nearly $70 million of receivables purchased in April 2014, Interstate Capital posted a record 30% year-over-year growth rate.  According to Interstate Capital President, Tony Furman, “Seasonally, we see a pattern of increased factoring activity coming out of the slower winter shipping season.  April is traditionally a strong month, but by summer, we expect receivable purchases to top $75 million per month.” Interstate Capital signed and funded approximately 100 new clients in March and April, accounting for some of April’s record results; but, mostly,  Interstate’s growth is attributable to already-existing clients selling more invoices, combined with a modest increase in the average invoices size. Compared to the same periods in 2013, Interstate Capital realized 2014 growth rates of 18% and 21% in fee income and investment portfolio size, respectively.

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, truck and trailer financing, freight brokerage and freight payable auction management 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. Holding its current rate of growth constant,  Interstate Capital projects to purchase in excess of $1 billion of receivables annually within the next two years.

 

 

 

Interstate Capital Group of Companies Announces Record-Breaking April 2014 Results

Interstate Capital Announces “100% Fuel Advance” Feature For Truckers

SAN FRANCISCO, CA. Interstate Capital Corporation, one of North America’s leading transportation factoring companies, announced at the International Factoring Association (IFA) Annual Conference it has begun marketing  a “100% fuel advance”.  Interstate Capital president, Tony Furman, describes a fuel advance as, “a financial product that provides truckers with ‘fuel money’ as soon as freight is picked up”. Without fuel advances, truckers have to wait until after delivery of freight to be paid their freight charges. Fuel advances have become a popular financial service among credit-constrained motor carriers and owner-operators in recent years.

Until Interstate’s announcement in San Francisco, fuel advances by factoring companies were limited to about 50% of the freight charge. Interstate will continue to offer its standard (50%) fuel advance at fees ranging from $14.99 – $24.99. Furman adds,  “We think the 100% fuel advance option will be a very popular product among our smaller fleets, because of the program’s simplicity and speed of funding. The trucker gets all its money when the load is picked up, minus our fee and it’s done.” Interstate Capital has priced its 100% fuel advance product at an all-in cost that is about the same as or slightly less than what truckers pay for 50% fuel advance products elsewhere. Most factoring companies that offer fuel advances require three transactions per load: a fuel advance of about 50% when the trailer is loaded, a 30-45% disbursement upon delivery, and a final disbursement (referred to as “reserve” or “hold-back”) once the factoring company collects the freight charges from the shipper or freight broker. “That’s an awful lot for small trucking companies to keep up with, not to mention a whole lot of banking and money transfer fees”, suggests Furman.

Key to Interstate Capital’s ability to market 100% fuel advances is its proprietary technology called Freight Payables Systems (FPS) which, when integrated with Global Positioning Satellite (GPS) and other licensed technologies, allows it to manage and streamline funding operations more effectively. In January 2014, Interstate Capital announced the pairing of licensed GPS technology with its FPS, and immediately followed that announcement with a 50% cut in the pricing of its standard fuel advances. “Most factoring companies do not offer fuel advances”, Furman explains.

Without factoring companies’ fuel advances, credit constrained truckers often resort to limiting themselves to hauling cheap freight posted by opportunistic freight brokers that offer quick-pay options. In terms of value, Furman explains, “We estimate our 100% fuel advance is worth about $.06 to $.08 per mile on the average long-haul load.” The alternative to fuel advances is waiting until after delivery to obtain funding from a factoring company; or waiting for weeks after delivery to obtain payment from the shipper or freight broker.”

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, trailer financing, and freight brokerage and freight payable auction management 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. 

Interstate Capital Announces “100% Fuel Advance” Feature For Truckers

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.

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

Interstate Capital Announces 23 IFA Factoring Companies Registered To Use Free Credit Report Service

EL PASO, TX February 18, 2014 Interstate Capital President, Tony Furman, announced that 23 factoring companies have signed up for its free credit reporting service offered by its subsidiary, Check Freight Broker, LLC.  (“CFB”).  Interstate Capital is a transportation factoring company formed in 1993 that funds nearly $1 billion per year of freight bills annually for thousands of motor carriers.  In May 2013, Interstate announced a program for factoring companies seeking to reduce credit expenses by providing them with free unlimited access to its proprietary database containing Interstate’s first-hand collection experience with tens of thousands of freight brokers.  Interstate Capital’s database contains millions of transactions spanning over 20 years. Since announcing its availability, 23 factoring companies have enrolled in the free program.

Interstate’s collection histories with freight brokers are published in searchable freight broker credit reports on CFB’s website,  CheckFreightBroker.com, the world’s largest free freight matching site (load board). Internet load boards, also known as freight matching sites, are used by thousands of truckers to find freight in locations they have empty capacity. Available freight is posted on load boards electronically by shippers and freight brokers seeking trucks with excess capacity.

Most load boards charge subscription fees to access their sites, in some cases, thousands of dollars per year.  CFB uses an advertiser-supported model, so site access is 100% free for registered members.  CFB has posted over 40 million truckloads of freight and has over 15,000 registered motor carrier members.

Among CFB’s many features is free unlimited access to Interstate’s extensive collection experience with tens of thousands of freight brokers. Interstate Capital is the only factoring company known to share valuable proprietary collection data publicly with its peers and motor carriers, 100% free of charge.  The only eligibility requirement a factoring company must satisfy is that it be a member of the IFA, an industry trade association that counts hundreds of factoring companies as its members.  CFB does not request or accept credit or collection data from third parties to ensure 100% control over the accuracy and timeliness of data displayed on the site.

Interstate Capital Announces 23 IFA Factoring Companies Registered To Use Free Credit Report Service

Interstate Capital Acquires Office Space And Moves Jobs From New Mexico To El Paso

Interstate Capital, a local commercial finance company, announced earlier this month that its parent company, American Finance & Investment Co, Inc. (AFIC), has acquired a  60,000 square-foot office building in El Paso fronting I-10, between Piedras and Cotton Streets. Interstate plans to sign a lease and become one of several major tenants in the building, relocating approximately 25 full-time positions from its offices in New Mexico to the 3-story office building in central El Paso. According to Furman, “Interstate is committed to leasing a large space on the building’s third floor, and will make an investment in renovating its interior space and upgrading technology and telecom infrastructure”.

For the past 21 years, Interstate has been a fixture in Santa Teresa, where it first occupied the space now housing a Subway sandwich shop on McNutt Road.  In 1999, Interstate expanded into a 7,000 square-foot office building located next to the Wells Fargo Bank branch on Country Club Road.  “When we built that building, it was intended to house a fraction of employees we now employ in Santa Teresa”, explained Furman. We had a few tenants which, over the years, were displaced by Interstate’s growing workforce.

AFIC spokesman, Ernest Eisenberg, reports that AFIC also plans to relocate employees from its Yandell office to the newly acquired building. While Interstate Capital’s corporate headquarters and executive management team will remain in New Mexico, future employment growth will take place primarily in El Paso, where Furman estimates Interstate Capital will eventually employ more than 100 full-time persons. The move by Interstate Capital to El Paso will not displace any current tenants.

Eisenberg is in negotiation with a large prospective tenant to take most of the rest of the available space.  “For us, the location is ideal because we and our tenants can zip on or off Interstate-10 right into the covered parking lot, and, depending on traffic,  it’s only a three- to six-minute drive to all the major medical complexes, UTEP, Fort Bliss, courthouses, Southwest University Park, the Fountains at Farah and our quickly transforming Downtown. I think our employees and our tenants will appreciate the building’s close proximity to everything that makes El Paso great, ” Eisenberg added. AFIC is hoping to have the building renovations completed in early 2015.

When completed, the building will be a more prominent fixture on the freeway, immediately east of Downtown, will be more visually attractive, and will be home to financial institutions, professional offices, and a radio station, among other businesses. According to Furman, “The acquisition of the building fulfills our group’s long-overdue need for more space for our continually growing workforce. The acquisition of this building will benefit our company and the El Paso economy. The Interstate Capital Group of Companies employs approximately 80 full-time employees, 60 of whom presently work in its Santa Teresa, New Mexico office.

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, truck and trailer financing, freight brokerage and freight payable auction management 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. Holding its current rate of growth constant,  Interstate Capital projects to purchase in excess of $1 billion of receivables annually within the next two years. AFIC will celebrate its 70th year in business in 2016.

Interstate Capital Corporation

Tony Furman, President

(915) 525-2705

tfurman@interstatecapital.com

Interstate Capital Acquires Office Space And Moves Jobs From New Mexico To El Paso