And Graft said it won’t be until 2023 before TriumphPay shows “meaningful revenue growth” as the company winds down its promotional price structure. TriumphPay has been in growth mode and has not been a strong contributor to the bottom line at Triumph Bancorp. At about 91,000, it’s up approximately 72% from the fourth quarter of last year. Graft said it added approximately 12,000 carriers during the quarter, up about 15.3% for the three months. The number of brokers in the TriumphPay system is now 554, which includes users of TriumphPay, TriumphPay Audit or both.Īnother statistic that rose significantly is the number of carriers using TriumphPay. Three factoring companies were added to TriumphPay Audit’s list of users in the fourth quarter, Graft said, bringing the total number of companies to 69. Part of making the number of conforming transactions grow is bringing additional factoring companies into TriumphPay Audit. “You can think of this as the difference between pulling out a checkbook at the grocery store 30 years ago versus tapping a credit card today.” “What makes a conforming transaction unique is that the entire process of presentment, audit, payment and cash application can be completed in an automated environment,” Graft said during the earnings call. But Graft said integration into Triumph Business Capital’s capability to perform conforming transactions is expected in the first half of this year. One factoring company that isn’t yet using conforming transactions is Triumph Business Capital, the factoring arm of TriumphPay parent company Triumph Bancorp (NASDAQ: TBK). On the earnings call, Graft said there are 11 more factoring companies that are waiting to begin conforming transactions. With the ability to audit a deal and conform its details now combined with the quick pay and processing capabilities of TriumphPay, the conforming transactions were able to get done just six to seven months after the HubTran acquisition closed. “HubTran brought with it the institutional knowledge and technical talent to understand how you audit an invoice and how to make sure the payer and the payee agree on what the invoice says,” Graft told FreightWaves after the earnings call. HubTran’s name has been changed to TriumphPay Audit. HubTran’s role both before the acquisition and in the conforming transactions is to audit invoices that are to be factored, confirming the validity of the details of the deals and the parties involved in them. “But it would have taken several more years of development that HubTran had invested.” But as Forman noted, it was also necessary for validation that the freight transaction actually took place and on what terms.īeing able to put together a conforming transaction would have been possible without the HubTran acquisition, Forman said. That process would not only need to be undertaken to get information into the hands of the payers and payees in the factoring transaction. “We look forward to more conforming transactions coming through the TriumphPay Payments Network.”įorman said the conforming transactions have solved the long-standing issue of making factoring payments without a bevy of phone calls. “This is just as exciting and impactful as the first time we landed on the moon,” Stanley said. However, Forman supplied to FreightWaves a comment from Derek Stanley, president of Engaged Financial, one of the companies involved in the first round of conforming transactions. In an interview with FreightWaves after the conclusion of the earnings call, Melissa Forman, the company’s chief strategy officer, said five factoring companies were involved in the conforming transactions. Watson, come here” were uttered by Alexander Graham Bell to his assistant. He likened it in terms of technological advancement to the placing of the first telephone call, when the famous words “Mr. TriumphPay, the payment and processing arm of Triumph Bancorp, has completed its first round of what it is calling “conforming transactions,” in which the infrastructure it has built organically and through the acquisition last year of HubTran completed a fully automated “soup to nuts” factoring payment.ĬEO Aaron Graft took the occasion of the company’s fourth quarter 2021 earnings call Friday to publicly disclose the transactions, which have all been done this month.
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