Interstate Capital business loans review October 2018 | finder.com

Interstate Capital business loans review

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Free up working capital with an advance on up to 100% of your unpaid invoices.

When the only thing holding back your business is unpaid invoices, factoring could be the working capital solution you’re looking for. In business for 25 years, Interstate Capital offers several factoring programs for a wide range of industries, from staffing companies to consultants.
Product NameInterstate Capital Factoring
Min Loan Amount$8,000
Max. Loan Amount100% of your unpaid invoices
APRvaries
Interest Rate TypeFixed
RequirementsBusiness in good standing with no existing tax liens
  • Be in good financial standing.
  • Have no federal tax liens.

First, do I qualify?

Eligibility requirements vary by program. Typically, your business must:

  • Be in good financial standing.
  • Have no federal tax liens.

What is Interstate Capital?

Interstate Capital is a factoring company that offers invoice factoring to small, midsize and large businesses. It works by buying a company’s unpaid invoices in exchange for a fee.

While Interstate Capital offers factoring by industry, it does so through two main options: full advance or reserve advance. Depending on your company, you may also pay interest based on the Wall Street Journal prime rate.

Full advance program

Select industries are eligible a full advance. Here, your business gets up to 100% of the value of its unpaid invoices for a fixed fee.

Flat rates vary depending on the value of your invoices:

Value Rate
$10,000–$30,000 4.99%
$30,000–$40,000 3.99%
$40,000–$50,000 3.49%
$50,000–$100,000 2.99%
$100,000 and up Up to 2.5%

Reserve advance option

Other industries are eligible for a partial advance of 75% to 90% of the value of their invoices. If your business factors invoices worth $100,000 or more, you might be eligible for a 95% advance.

This program comes with incremental rather than fixed fees. Fees apply every 10 days your customers take to satisfy their invoices.

Fees depend on the total value of your business’s invoices:

Value Fee
$10,000–$30,000 0.99%
$30,000–$40,000 0.89%
$40,000–$50,000 0.79%–0.69%
$50,000–$100,000 0.59%
$100,000 and up 0.49%

What makes Interstate Capital unique?

Interstate Capital is backed by more than two decades of invoice-factoring experience.

But it stands out with unique programs designed for a broad range of industries that include:

  • Maintenance services
  • Pallet companies
  • Distributors
  • Oilfield services
  • Importers and exporters
  • Machine shops
  • Janitorial companies
  • Government contractors
  • Food services
  • Food manufacturers, distributors and importers
  • Apparel businesses

What are the benefits of using Interstate Capital?

  • Fixed and tiered fees. Depending on your industry and business, you can find both fixed rates and flexible fees.
  • Serves range of industries. Interstate Capital supports 22 industry-specific programs tailored to your business type.
  • Up to 100% advance. If your industry is eligible for a fixed rate, you might get up to 100% of your invoices’ value up front.
  • No maximum amount. Factor as much as you need to with Interstate Capital.

What to watch out for

  • Expensive compared to alternatives. Depending on your creditworthiness, you might find a cheaper option through more traditional business financing.
  • Not ideal for emergencies. It can take a couple of business days for a response after you’ve submitted your paperwork — which itself can take time to put together.
  • Not much information online. You’ll likely need to reach out to Interstate Capital for details on how your industry’s program works.

Compare more business loans

Rates last updated October 22nd, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Credibly Business Loans
Funding to cover business expenses with daily or weekly repayments.
$5,000
$250,000
At least 6 months in business, average $10,000 in monthly deposits.
Lendio Business Loan Marketplace
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
$500
$5,000,000
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
LendingClub Business Loans
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
$5,000
$300,000
2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000
$500,000
Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
Lending Express Business Loan Marketplace
$5,000
$500,000
At least 3 months in business and $10,000+ in monthly revenue. Your business might also qualify if it's been in business at least 6 months with $3,000+ in monthly revenue.
Fora Financial Business Loans
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
LendingTree Business Loans
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.

Compare up to 4 providers

What does the Internet say about Interstate Capital?

As of September 2018, customer reviews are generally positive. More than 90% of the reviews on Interstate Capital’s Better Business Bureau (BBB) page are positive, with only one person filing a complaint against the business. It also earns an A+ rating from the BBB based on factors like time in business and transparency, rather than customer reviews.

It doesn’t do quite as well on Trustpilot, scoring an 8.4 out of 10 based on 44 reviews. But only 2% of reviewers consider their experience “bad.” Many of the customers who left glowing reviews said they’d worked with Interstate Capital for years and loved the professional customer service. A few customers had trouble setting up their account, however, and one person felt they weren’t properly informed of disclaimers before they signed up.

How do I apply?

Factoring is one of the more involved forms of business financing, and Interstate Capital takes a hands-on approach with its customers. Prepare to wait a few business days before you get your funds.

Eligibility

Before getting started, make sure your business is eligible for the program it’s applying for. Most programs require your business to be in good financial standing with no tax liens.

If your business does have a tax lien, you might be eligible for a loan if Interstate Capital can get a subordinate agreement from the IRS.

Steps to apply

  1. Go to the Interstate Capital website.
  2. Complete the form under Quick Funding Estimate with your contact information and basics about your business. Click Get Your Free Instant Quote.
  3. Select your average invoice size, and click Continue.
  4. Select the average number of days it takes for a client to fill an invoice. Click Continue.
  5. Select the amount you billed your clients last month, and click Continue.
  6. Select the range you expect your clients to bill you this month. Click Continue.
  7. Pick the portion of your monthly receivables you’re interested in factoring, and click Continue one last time.
  8. Either view your potential offer or follow the directions to get in touch with a representative to go over the details of your business and discuss your options.
  9. Set up a consultation with a specialist, and follow their directions to compete your application and submit paperwork.
  10. Wait for Interstate Capital to contact you with a response, typically one or two business days after you’ve submitted your paperwork. If you’re approved, you may see your advance on the same business day.

How to apply step-by-step with screenshots

What documents do I need to apply?

The documents you need vary widely by program. Typically, factoring companies want to see an accounts receivable and payable aging report, which lists your business’s unpaid invoices and when they’re due.

Some factoring companies also want to see business bank statements and tax returns to get an idea of your business’s financial state.

I factored my invoices with Interstate Capital. Now what?

There’s not much you need to do for this month. After you’ve received your advance, Interstate Capital contacts your clients with instructions on how to pay the invoice.

If your business signs up for the reserve advance program, the factor fee adds up until your clients satisfy their invoices. After all invoices are filled, your business gets the rest of its invoices’ value less the factor fee.

In the meantime, you can keep track of invoice payments by logging in to your online account. Reach out to customer service at 888-978-2103 with any questions about the process.

Bottom line

Interstate Capital offers a wide range of invoice factoring programs designed to fit your business type. But like other factoring companies, it’s not the cheapest financing option or ideal for emergency expenses.

To learn about your other business loan options and compare lenders, read our guide to business loans.

Frequently asked questions

Image Source: Shutterstock and interstatecapital.com

Anna Serio

Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

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