Interstate Capital, a 22-year-old El Paso-based company that provides working capital financing for growing companies, has released preliminary partial results for its fiscal year ended June 30, 2015. The company, a partially owned subsidiary of American Finance & Investment Co., Inc. (“AFIC”), has posted gains in volume and revenues consistently every year since its inception.
The last fiscal year was no exception. For the year ended June 30, 2015, Interstate posted over 16% annual growth in volume (receivables purchased), 16% portfolio growth and approximately 11% top-line revenue growth. In the month of June, Interstate originated 50 new client relationships, a 30% increase over June 2014 when 35 new clients were added. Interstate added over 400 new client relationships in 2015.
Interstate, which purchased nearly $900 million of receivables in 2015, expects volume to exceed $1 billion for the first time next fiscal year, one year ahead of its 5-year plan developed in 2012. Interstate projects 14% compounded annual portfolio growth over the next three fiscal years.
Interstate management attributes 2015 performance and growth to increased investment in its proprietary technology platforms and websites, a highly digitalized and automated origination model, aggressive loss management, the opening of a new outbound call center and marketing efficiencies.
The Interstate Capital Group of Companies is a leading provider of accounts receivable factoring, 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 10,000 motor carriers and other small businesses in the U.S., Canada, and Mexico. Interstate Capital projects to purchase in excess of $1 billion of receivables next fiscal year. Interstate is one of the largest privately held, non-bank transportation factoring companies in North America.