Seasonally, we see a pattern of increased factoring activity coming out of the slower winter shipping season. April is traditionally a strong month, but we expect receivable purchases to top $75 million by summer or early fall.
(PRWEB) May 07, 2014
Interstate Capital Corporation, a leading marketer of accounts receivable and freight bill factoring, 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, in which the seller obtains immediate payment from the investor, and the investor 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 we expect receivable purchases to top $75 million per month by summer or early fall.” 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 invoice 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.