Payost vs. Interstate Capital

The storm restoration business is fraught with peril. None more threatening to the survival of many companies than the thousands of dollars per day it costs to keep each crew on the road. This could, and often does, cause storm restoration companies to exhaust their working capital.

That may not seem like such a big deal except that once they return home, they face a 90 to 120 day wait for payment on the work they performed. And during that time they still have to make payroll, conduct vehicle maintenance, keep the lights on in the office, and satisfy impatient subcontractors.

Without help, they may not be able to meet the challenge. But who can they turn to get that help? Interstate Capital? We’re about to find out.

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What is Interstate Capital and What Do They Offer?

Interstate Capital Corp is a subsidiary of Triumph Business Capital. Interstate is a financial services company that serves small and mid-sized enterprises in both the US and Canada. Their main product is invoice factoring and they offer it to a range of businesses including truckers, oil field service companies, manufacturers, freight brokers, staffing services, and storm restoration companies.

Their invoice factoring model is less dependent on the outstanding credit of the customer holding the invoice than that of some other factoring companies.

In one sense, that’s good because it means Interstate is likely to approve a higher percentage of your invoices from various sources—although somewhat questionable sources. On the other hand, it could wind up being problematic because companies with less than stellar credit are more likely to miss payment. In which case, you wind up having to repurchase the invoice. Not only that, but you have to pay a hefty surcharge for the non-performing invoice.

In addition, because the Interstate business model relies on you being able to repurchase those non-performing invoices, they do a hard credit check on you that could wind up reducing your credit score. And because they purchase your invoice outright, they notify the utility or other company that they bought the invoice which isn’t good for reasons we’ll go over in a bit.


Interstate Capital Qualification Requirements

Qualifying for invoice factoring from Interstate Capital is typically faster and easier than qualifying for a bank loan. And if you’re approved, it will likely wind up being more cost-effective than a line of credit. But while the process isn’t as difficult as working with a bank, it’s still not for everyone. In order to qualify, you must meet the following requirements:

  • Your company must be a B2B company
  • You mustn’t be in the firearms, adult services or marijuana industries
  • Your company must be at least 1 year old
  • You must have annual revenue of at least $100,000
  • All invoices must be free of liens
  • You shouldn’t be in open bankruptcy

Keep in mind too that your company can’t be a non-profit enterprise and the customers who hold your invoices must have reasonably good credit. Because if they don’t then your rates and fees will likely go through the roof. And if a customer doesn’t pay off an invoice, you’ll be required to buy it back from Interstate at a substantial loss.


How Does Interstate Capital Work?

Interstate Capital works by providing small and mid-sized companies with the money they need to survive a cash crunch. At least that’s the theory. However, if you currently have unpaid invoices held by any type of AAA credit rated companies, you would be undermining your company finances by opting for this type of invoice factoring.


Application Process

The Interstate factoring application process seems like it should be pretty straightforward but it’s actually pretty time-consuming. In order to apply, you’ll first need to go to the Interstate website and fill out a brief questionnaire. They’ll want to know the following:

  • Your full name
  • The type of business you have
  • The name of your business
  • Your mobile number
  • Your email address

Once you’ve filled out the information, there’s a big orange button that you click that says “Get instant Quote.” But it’s not quite that simple because, even if you do wind up getting a fast quote, it’s not a quote the company is bound to honor. Instead, it’s more of a “in a perfect world we might offer you this” kind of thing.

Nonetheless, if you like what you see, you still have to go through the full application process which includes lots of questions about:

  • How long you’ve been in business
  • Your annual revenue
  • How many employees you have
  • How much money you need
  • Why you need it
  • When you need it
  • And more

You’ll also need to agree to a credit check. Only after they have checked out your information (which could take a full day) will you get an “instant” quote that they’ll stand by.


Interstate Capital Pros and Cons

While Interstate Capital Corp has helped many companies weather tough financial conditions, invoice factoring isn’t necessarily the best solution for everyone. Here are the relative pros and cons of working with Interstate Capital:


  • You can normally get funded within 24 hours
  • Their mobile app can be a time-saver
  • There’s no limit on the number of invoices you can factor
  • Non-recourse factoring is available in some cases


  • You have to buy back non-performing invoices
  • They claim advance rates as high as 100%. What you’re likely to get is around 80%
  • They run a credit check that could damage your credit score
  • They inform the utility or the other company that you sold them the invoice which could harm your reputation

Interstate Capital Review

Our review of Interstate Capital shows that they should be considered as a last resort source of advance funding. While they generally make good on their promise of prompt funding, their payback terms can negate any advantage you enjoy from the fast funding of your invoices. A much better choice is Payost invoice financing which we’ll get into in a moment.

Interstate Capital vs Payost Comparison

Interstate Capital as we have seen, is neither the best nor the worst way for a company to obtain emergency capital. However, if you have unpaid invoices being held by a utility or another triple A credit rated company, you should avoid invoice factoring and opt for invoice financing from Payost instead to get the following benefits:

  • There’s no credit check
  • No minimum number of invoices to submit
  • No daily, weekly or monthly payments
  • You get optimal value for your invoice.

Payost doesn’t offer business loans or business credit. If you have outstanding invoices being held by AAA credit rated companies, we will pay them for you. Not buy them—pay them. Simple as that. When the utility finally pays the invoice, you reimburse us plus a modest fee. It’s that simple.

“Most overnight successes took a long time." - Steve Jobs

In addition, because we don’t purchase your invoices outright, the utility never learns that you needed assistance in the first place. The result? Your company’s sterling reputation is preserved!

Bottom Line: Should you try Payost?

Yes. If you have unpaid invoices being held by a AAA credit rated company, don’t sell them to a factoring company for less than they’re worth. Take a few minutes and apply to Payost. You’ll receive optimal value for little to no hassle. We’re the smart alternative to:

  • Invoice factoring
  • Early payment financing
  • Merchant cash advances
  • Small business loans
  • Bank financing
  • And all other types of advance funding

Payost invoice financing is several steps up from invoice factoring. Our model is completely dependent on the creditworthiness of the company holding your invoice. Your company could be small and new and have no future work lined up at the moment but if you have invoices that meet our criteria, we can help you in some way. So don’t delay and contact Payost today. We’re the common sense answer to cash flow problems!

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