• ITVI.USA
    15,468.880
    -66.690
    -0.4%
  • OTRI.USA
    24.430
    -0.330
    -1.3%
  • OTVI.USA
    15,420.510
    -73.710
    -0.5%
  • TLT.USA
    2.710
    -0.010
    -0.4%
  • TSTOPVRPM.ATLPHL
    2.500
    -0.050
    -2%
  • TSTOPVRPM.CHIATL
    3.080
    0.050
    1.7%
  • TSTOPVRPM.DALLAX
    1.370
    -0.080
    -5.5%
  • TSTOPVRPM.LAXDAL
    2.950
    0.040
    1.4%
  • TSTOPVRPM.PHLCHI
    1.690
    -0.010
    -0.6%
  • TSTOPVRPM.LAXSEA
    3.130
    0.110
    3.6%
  • WAIT.USA
    120.000
    0.000
    0%
  • ITVI.USA
    15,468.880
    -66.690
    -0.4%
  • OTRI.USA
    24.430
    -0.330
    -1.3%
  • OTVI.USA
    15,420.510
    -73.710
    -0.5%
  • TLT.USA
    2.710
    -0.010
    -0.4%
  • TSTOPVRPM.ATLPHL
    2.500
    -0.050
    -2%
  • TSTOPVRPM.CHIATL
    3.080
    0.050
    1.7%
  • TSTOPVRPM.DALLAX
    1.370
    -0.080
    -5.5%
  • TSTOPVRPM.LAXDAL
    2.950
    0.040
    1.4%
  • TSTOPVRPM.PHLCHI
    1.690
    -0.010
    -0.6%
  • TSTOPVRPM.LAXSEA
    3.130
    0.110
    3.6%
  • WAIT.USA
    120.000
    0.000
    0%

TriumphPay



TriumphPay is a leading provider of carrier and vendor payment solutions to the supply chain industry. TriumphPay has paid over 50,000 carriers on behalf of its freight broker and shippers. TriumphPay is a product of Advance Business Capital, an operating subsidiary of TBK Bank, SSB (Member FDIC). TBK Bank, SSB is a subsidiary of Triumph Bancorp, Inc. (Nasdaq: TBK), a financial holding company with a diversified line of community banking and commercial activities.

  • New freight benchmark study brings shippers’ payment practices into the light

    When it comes to freight audit and payment strategy, shippers don’t operate as a monolith. The Journal of Commerce (JOC) just released a freight payment benchmark study that brings urgent transparency to the payment practices of the shipper community. 

    The study, “Driving Strategic Value Through Outsourcing,” written by Eric Johnson, senior technology reporter at the JOC, aggregates the responses of 77 shippers across all modes, nearly three-quarters of which generate $1 billion or more in annual revenue. 

    While two-thirds of the respondents said they have outsourced either the audit or payment processes or both, outsourcing — and the benefits it generates — is concentrated among the larger shippers with more carriers to invoice. Smaller shippers are more likely to keep auditing and payments in-house and therefore don’t understand the benefits of outsourcing or the vast difference between vendors that are bank-backed and those that are not.

    “It’s the perfect time for this study to be released.” said George Lorenze, vice president of business development at TriumphPay. “As shipper priorities have shifted to now emphasizing the security of funds and safety of banking data, the selection criteria they use in choosing an outsource payment processing vendor is also changing.”

    Lorenze said the new selection criteria is based on three factors: the recent high-profile bankruptcies and frauds in the freight payment space, increased awareness around cybersecurity and ransomware attacks and the availability of early payment options—supply chain finance for carriers. 

    Lorenze said the bankruptcies and frauds were all perpetrated by non-bank backed institutions, institutions not regulated by the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), the U.S. Securities and Exchange Commission (SEC), or the Department of Homeland Security. The study revealed that only 21.9% of the shippers surveyed use a bank-backed vendor, and only 24% of the shippers surveyed believed being bank-backed was important. 

    But the timing for this shift doesn’t seem to be spurred by COVID-19’s supply chain disruptions. Fewer than 10% of the shippers surveyed believed the pandemic would motivate them to change their existing audit or payment strategies. 

    “I wasn’t really surprised that shippers didn’t change [their audit and payment practices relationships] specifically, because they have had so many other things to focus on, like how inventory was fluctuating,” said Haley Evans, vice president of sales at TriumphPay. “When you have a lot of your money in inventory, you can’t use it for anything else.”

    Hannah Testani, Chief Operating Officer at Intelligent Audit, believes the 43.9% of shippers who don’t care whether or not they use a bank-backed payment vendor are acting irresponsibly with their money. “[Shippers] are taking so much money and pushing it through to an unregulated institution. Imagine taking your personal money and giving it to Joe Schmo down the street instead of putting in the bank. You would never do that.”

    The study inquires into obvious benefits of outsourcing like reducing administrative costs, improving invoice accuracy and avoiding overpayment. Small and medium-size shippers who are more apt to process payments in-house are paying nearly double what the large shippers pay per outsourced invoice. Shipper respondents reported an average invoice inaccuracy rate of 20.8% — a figure that seemed low to both Johnson and Lorenze. 

    An attractive benefit of the outsourced audit and payment process is having payment term flexibility for carriers, but the survey responses revealed that larger shippers tend to have longer payment terms than small to medium-size shippers, and 41.9% of shipper respondents were actively seeking to extend payment terms for their carriers. However, shippers that use bank-backed vendors pay carriers in an average of 41.7 days, as opposed to non-bank-backed vendors’ average of 47.3 days.

    The study delves further into less obvious benefits of outsourcing, such as how the invoice data can be used to inform financial decisions, carrier selection and freight spend reductions. Nearly half (46.5%) of the shipper respondents use payment data for rate negotiations, while 16.3% use it to strategically select carriers and brokers. 

    “There’s so much opportunity for shippers to reduce costs by just looking at their data and questioning why they have bad practices,” said Testani. “Intelligent Audit empowers shippers to make fact based decisions, rather than emotional decisions by standardizing their data and easily pointing out where there are opportunities for additional cost savings – ‘What carrier should I be using where? Where are they actually performing well? What are my actual costs per shipment?'”

    Johnson hopes shippers will use this study as an evaluative tool to compare their spending on invoicing or to gauge how outsourcing would benefit their operation, since most of the market is moving in that direction. Payment processing has historically lived in the shadows of the back office, but outsourcing vendors, particularly those that are bank-backed, are exposing the enormous costs, errors and discrepancies of keeping payment and auditing in-house. 

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  • Brokers: Does it matter how you pay your carriers?

    A recent survey of Transportation Intermediaries Association members conducted by freight payment technology company TriumphPay revealed that roughly 90 percent of truck brokers do not have a web portal that allows carriers to view their payment status and manage their payment method.

    That statistic spotlights the enormous marketing opportunity that exists for brokers looking to grow their truck carrier customer base. That’s because making freight payments easy for trucking companies to collect is considered one of the best ways to build carrier loyalty.

    In addition, brokers who neglect to invest in improving their carrier payment experience run the risk of being left behind and making it harder to retain carriers – putting them at a strategic disadvantage with their competitors.

    “It’s not just about getting payments out faster, it’s about how and when carriers want to get paid,” said TriumphPay President Jordan Graft. “If a broker can provide that type of transparency and visibility, that carrier is more likely to come back and work for that broker. We know that’s the case after having made tens of thousands of carrier payments. Carriers value that visibility because it lets them see where their money is.”

    On top of that, surveys have also shown that loyal carriers can be five times more valuable to a broker’s business than a so-called “one and done,” simply because they’re more familiar with how those brokers’ systems and processes work.

    “They don’t have to re-verify the information around onboarding, and they know how to use the tracking system that the broker has in place – in addition to being familiar with how they get paid from that broker,” said Graft.

    Brokers should consider the following questions to determine whether their carrier pay program is likely to attract a loyal carrier base: 

    • Do you make it easy for carriers to submit paperwork?
    • How do carriers receive payment updates and invoice status?
    • How often are carriers calling about their payment by phone?

    Brokers that use TriumphPay allow their carriers both reactive and proactive options for invoice and payment communications. The portal updates carriers when an invoice is approved for payment or when a payment goes out. Carriers also have the option of opening a chat discussion on TriumphPay’s website, sending an email or picking up a phone. “Whatever way they want to interact with us – it’s both push and pull,” Graft says.

    “We update carriers on payment information extremely infrequently – almost all of our carriers use TriumphPay’s portal to get their payment information,” said Will Kerr, President of Chicago, Illinois-based Edge Logistics. “It’s a great thing, because it means I have less people on the phone and more people doing other work.”

    Kerr, who emphasizes that carrier retention is a core focus of his company, has found that carriers much prefer going to a web portal and seeing everything in front of them versus calling in to the accounting department and asking for help. “By making it easy and transparent, we’ve seen fewer billing issues, more accurate bill processing, and our carriers are turning paperwork around a lot faster.”

    Another way that TriumphPay helps Kerr build and keep his carrier base is the ease with which the company’s technology allows carriers to use “QuickPay” payment programs, he said.

    “In years past, a carrier’s QuickPay information would have to be manually entered during the onboarding process. Now, it’s all done automatically. It makes QuickPay a way more viable option for carriers.”

    Since partnering with TriumphPay, the QuickPay utilization rate for Edge Logistics has increased from 5 to 8 percent to more than 20 percent, according to Kerr.

    Omar Singh, president and founder of Jacksonville, Florida-based Surge Transportation, agrees that carrier loyalty can “absolutely” be developed by making it easy for carriers to get paid. “It’s one of the things we try to sell on,” Singh tells FreightWaves.

    For example, when going out to recruit carriers, “we tell them that if they pick up a [contract] lane, then we put them in a preferred program and waive the QuickPay fee – and pay them the same day to keep their cash moving,” Singh said. “It’s a big deal to them when we say we want them to move $10,000 of freight for us every week and pay them the day they deliver.”

    A TriumphPay broker that operates heavily in the consumer-packaged goods market, Surge Transportation’s business is roughly half short-term spot loads, half repeat contract business.

    “The only way to really grow by 5,000 to 10,000 to 50,000 shipments a year is by having carriers staying in your network continually,” Singh says, “either picking up a whole lane or just wanting to round-trip freight.”

  • Broker efficiency starts in the back office

    As more signs in the truck freight market point to decreasing demand and excess capacity, brokers are looking for better ways to increase the efficiency of their back-office operations to remain competitive and grow their business.

    Most brokers require at least one or two employees dedicated to cutting checks, stuffing and sending out envelopes, verifying and approving paperwork, and making sure bank reconciliation matches within their accounting system. If a carrier calls to say their payment is incorrect, they must deal with that resolution process as well.

    “Imagine having an employee making $15 an hour, and their entire job is to get invoices processed,” Kate Juliao, vice president of operations for TriumphPay, told FreightWaves.

    “Not only do you have the accounts payable person working on one load, but you may also have the dispatcher, and the person responsible for carrier recruitment involved in onboarding the carrier for that load. What’s the net profit that a broker makes after using all those individuals to get that load paid? That’s why knowing your cost-per-invoice is crucial to producing as many back-office efficiencies as possible.”

    TriumphPay’s carrier-payment processing technology’s ability to generate cost efficiencies has allowed Cincinnati, Ohio-based truck brokerage Logikor to see a significant reduction in mailing costs. “We tended to be still somewhat check-heavy, whereas TriumphPay’s entire ecosystem is built around payments and is very flexible,” said Logikor Chief Financial Officer Paul Silk. “Instead of us having to cut 50 checks a day, now there is one pre-authorized debit from TriumphPay. So from a bank reconciliation perspective, it has brought real efficiency to our back office.”

    Silk added that by Logikor feeding load information into TriumphPay’s portal, the factoring companies and carriers he uses that log-in to TriumphPay can see that information and conduct rate validations, thereby avoiding having to call Logikor’s team. “And that’s fantastic, because we’re starting to see fewer payment inquiries and fewer load validations where factors are looking for rate inquiries.”

    With less demand on in-house resources – particularly on accounts payable – Salt Lake City, Utah-based brokerage ShipEx Logistics was able to avoid hiring a replacement for an accounts payable employee, and could instead allocate resources to where they would generate revenue. 

    “The back-office efficiencies that TriumphPay brings has allowed us to put a lot more of our efforts into areas that need our immediate attention, or in areas we haven’t been able to focus on as much because of the demand on accounts payable that we had before,” ShipEx Logistics’ director of operations, Jonathan Homer, told FreightWaves. “We can have employees focus instead on collections or work through claims – things that allow us to get money into our system.”

    TriumphPay brings the benefits of being an operating subsidiary of a publicly traded financial institution, Triumph Bancorp, Inc. (NASDAQ: TBK) and a transportation-focused solution with over 70,000 carriers on the platform.

    Brokers receive the convenience of keeping the transportation management systems (TMS) and accounting systems they currently use. TriumphPay is already fully integrated with several platforms, including MercuryGate, McLeod, Aljex, TMW, Revenova, Oracle, QuickBooks and GreatPlains, with more to follow. It has a development team on staff that can also build custom integrations to support proprietary TMS solutions.

    Juliao explained that the TriumphPay team takes over once a specific invoice has been approved for payment within  the broker’s TMS or accounting system.  TriumphPay allows carriers to see precisely which approved payments will be coming to them, as well as when they are scheduled for payment. Before the carrier payment goes out, they can review the amount and the load information that’s documented with the specific load and broker.

    “That gives carriers an advance preview of what’s going to be paid out to them, and the ability to change, if they prefer, from a standard payment term to a QuickPay term,” she said. “It takes over much of the manual work that the broker’s accounts payable teams are having to deal with.”

    Juliao said that at TriumphPay, technology is considered a way to provide efficiency so that employees can do their jobs better. “We’re not going to wake up tomorrow and robots are going to be doing carrier payments. We’re providing a way to make their job more effective.”

    The brokers’ carrier partners are noticing that change as well. “Some of these carriers can be quite demanding as far as getting information right away, so it was amazing to see how quickly they bought into the process,” Homer said.

    “Being a carrier is a tough business in itself, and if we can make it easier for them to manage their finances and their operation, that improves them as a carrier and improves the industry, and that’s a win for everybody.”

  • Breaking the lock on carrier payments

    Cash flow – the life blood of a trucking operation – is under more pressure than ever as shippers continue to push out pay dates to their brokers, giving brokers limited options other than to do the same to their carrier partners.

    That pressure is felt more acutely by the 80 to 85 percent of the trucking industry that doesn’t happen to be a major truckload or less-than-truckload (LTL) company. For carriers not part of that upper 15 percent, the answer has been to lean increasingly on factoring companies to purchase their invoices, for a fee, in exchange for faster payment.

    Ten years ago, there was a negative connotation attached to factoring. A carrier was looked upon as weak if it had to rely on these companies as a financial crutch. Now, factoring is considered just another cost of doing business.

    “What we see in the market today is that about 43 percent of carrier payments are made through a factoring company to address not only cash flow issues, but for administrative support as well,” explained Melissa Forman, Chief Operations Officer at TriumphPay, which provides carrier and vendor payment services to the supply chain industry.

    “Carriers’ operational costs are real-time. They have to pay their drivers, make truck payments, pay the insurance, fuel the trucks – and they’re not getting paid for 30-45 days. Factoring allows them to pay for today’s work with tomorrow’s receivables. But it also puts them behind.”

    That’s because not only are factoring companies charging between 3 and 5 percent of the face value of the invoice to process a carrier’s bills, once a carrier is in a factoring relationship it is “locked in,” with usually no flexibility to alter payment processes among their brokers – even if the same level of cash flow isn’t needed.

    “Trucking companies typically operate on a 15 percent margin – if they’re lucky,” Forman said. “So if 5 percent of their sales are going to a factoring service, where they lack control to pick and choose specific invoices for QuickPay, it’s really restricting in what they can do to be able to grow and invest in their business.”

    A broker’s perspective

    Truck brokers are seeing the same trend in freight payments but through a different lens. While most offer some type of QuickPay service to their carriers, it’s not something they have been actively marketing. A big reason for that is it tends to put them in the same cash-flow bind as their carriers.

    “We’ve had a QuickPay program available, but we weren’t advertising it – it was more on an as-needed basis,” Craig Cappello, President of Bradenton, Florida-based brokerage Route Transportation and Logistics, told FreightWaves. “If a carrier needed QuickPay, we offered it.”

    In addition, he said, most of those companies that did sign up for a QuickPay program were fleet owners, both small and large, and not owner-operators. But that could be about to change.

    “Personally, I think you might see a resurgence of independent operators coming back into the marketplace really soon because of technology that allows them to have complete independence without having those payment issues and back office things to worry about.”

    TriumphPay has the technology that’s starting to make that change happen. Its software provides a single interface for carriers to manage all their paperwork in one place while giving them the option of using QuickPay or continuing to factor their invoices for brokers not yet on the TriumphPay platform.

    Bank muscle

    As a product of Advance Business Capital, an operating subsidiary of TBK Bank, SSB (which itself is a subsidiary of Triumph Bancorp, Inc.), TriumphPay has already paid over 70,000 carriers through the brokers it has partnered with so far.

    “We have the technology platform, but we also have the supply-chain finance piece that really wasn’t in the market before,” Forman said. “We’re handling our broker customers’ carrier payments as an extension of their Accounts Payable team through our integrated platform. That then provides the liquidity when their carrier wants to get a QuickPay.”

    Forman pointed out that with TriumphPay’s ability to offer QuickPay rates at less than the cost of factoring, carriers will have the option to begin paying off balances within their factoring company-broker relationship. “It’s all about giving control back to the carrier,” she said.

    While TriumphPay does have competitors in the space, it’s the only one in the brokered freight world that is part of a bank.

    The payment conveniences TriumphPay offers trucking companies has led to more carrier onboarding for brokers. “We have more carriers that are choosing the QuickPay option since it’s a 2 percent [invoice charge to use it] for same day payment versus net 30 days,” Lindsey Slingerland, office administrator for Wilmington, North Carolina-based Matchmaker Logistics, told FreightWaves. “There’s also a [direct deposit] option, which was something we weren’t to the point of offering yet, and a lot of carriers have been wanting it instead of a mailed check. Now they can get that for free.”

    TMS-friendly

    Brokers also get the convenience of keeping the transportation management and accounting systems they currently use, as TriumphPay is already fully integrated with several, including MercuryGate, McLeod, Aljex, TMW, AscendTMS QuickBooks, and GreatPlains – with more to follow – and has a development team on staff that can build custom integrations as well to support home grown solutions.

    TriumphPay soon will be offering a document capture function on its mobile app that will allow carriers to submit their paperwork and create an invoice for their broker – a function carriers are currently using factoring companies to perform.

    Making a change in the way freight payments are handled is helping level the playing field for carriers and brokers that make up that 85 percent of the industry that requires a different service model than their larger corporate counterparts.

    “Especially over the last two years, companies like Coyote and C.H. Robinson probably had a real advantage on the technology side,” said Route Transportation’s Cappello. “I think that’s changing pretty quickly, because of companies like TriumphPay and others that are offering technology at a reasonable cost. That’s what I’m really excited about.”

  • Press Release: TriumphPay and MercuryGate Announce Integration and Strategic Partnership

    TriumphPay, a leading provider of carrier and vendor payment solutions and MercuryGate, a global provider of cloud-based transportation management solutions, announced today a strategic partnership and integration of TriumphPay’s carrier payment processing platform with MercuryGate’s Transportation Management System.

  • Video: TriumphPay–The Revolution in Carrier Payments

    TriumphPay seamlessly integrates into a brokerage’s existing TMS (Transportation Management System) and core accounting platforms so that brokers can confirm payment to carriers with a click of a button. Brokers can customize their payment terms, including quick-pay options.

  • Press Release: TriumphPay Surpasses 100 Clients

    TriumphPay, a leading provider of carrier and vendor payment solutions to the supply chain industry, now has more than 100 brokerages using its payment processing solution.

  • Press Release: TriumphPay and Intelligent Audit Announce Partnership to Link Supply Chain Financing and Transportation Spend Optimization Solutions

    TriumphPay, a leading provider of carrier payment, factor management, supply chain finance solutions and Intelligent Audit, a leader in freight audit, business intelligence analytics, and transportation spend optimization solutions, announced today a new partnership. The companies, which process a combined $15 billion in transportation spend annually, said that they are committed to streamlining and digitizing business processes attached to transportation management.

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