CHATTANOOGA–Factoring is generally defined as a transaction between a factoring company in the middle of a relationship between a broker or shipper on one side and a carrier on the other, with the latter getting paid quicker by the factoring company who then turns to the shipper or broker to collect. But the weak freight market combined with other economic ills is resulting in factoring companies now finding themselves waiting longer to get paid by whoever hired the carrier in the first place, according t ...

Core Insights - Factoring can provide immediate cash flow for small carriers and owner-operators, allowing them to receive payment within 24 hours instead of waiting 30 to 45 days [1] - However, the contracts signed with factoring companies may contain unfavorable terms that can impact long-term profitability, creditworthiness, and business flexibility [1][4] Factoring Agreement Overview - A factoring agreement is a legally binding contract where a company sells unpaid freight invoices to a factoring company for immediate cash, typically receiving 80% to 95% of the invoice value [3] - Once signed, companies may find it challenging to change or cancel the specific terms of the agreement [4] Recourse vs. Non-Recourse Factoring - Understanding whether a contract is recourse or non-recourse is crucial; recourse factoring holds the company responsible for unpaid invoices, while non-recourse factoring transfers the risk to the factoring company under specific conditions [5][6] - Many companies may misrepresent non-recourse factoring by including clauses that still hold the company accountable for disputed invoices or unapproved brokers [5] Hidden Fees in Factoring Contracts - Common hidden fees in factoring contracts include: - ACH or wire transfer fees, which can be as high as $25 for transferring funds [7] - Invoice processing fees for each handled invoice [7] - Minimum volume fees if the company does not meet a set threshold of loads or revenue [7] - Termination fees for early contract cancellation, potentially amounting to thousands [7] - Reserve hold fees where a portion of funds is withheld for risk mitigation [7]

Core Insights - Triumph Capital's CEO Aaron Graft highlighted unexpected strength in factoring data for owner operators amidst a freight recession [1][2] - Government actions may tighten trucking capacity, potentially marking an "inflection point" in the market [2] Factoring Data - The average transportation invoice factored by Triumph in Q3 was $1,690, an increase of $27 from Q2, influenced by rising diesel prices [3] - The average factoring invoice price for fleet customers was $1,817, down $92 year-over-year, while owner operator invoices rose by $16 to $1,317 [4] Owner Operator Resilience - Owner operators are surviving due to lower fixed operating costs and greater flexibility, allowing them to adapt to unfavorable freight rates [4] - The ability to switch to alternative income sources, such as driving for Uber, enables owner operators to remain active in the market longer than anticipated [4]

Core Insights - Triumph Financial, Inc. has released its third quarter 2025 financial results, which are available on the company's website [1] - A conference call to discuss the financial results will be held on October 16, 2025, at 9:30 a.m. central time [1] Company Overview - Triumph Financial is a financial and technology company focused on modernizing and simplifying freight transactions through payments, factoring, intelligence, and banking [3]

Core Viewpoint - Triumph Financial, Inc. is set to release its third quarter financial results and management commentary on October 15, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results and management commentary will be available on the Company's Investor Relations website [1] - A conference call to review the financial results will take place on October 16, 2025, at 9:30 a.m. central time [2] - The live video conference can be accessed through a specific link or via the Company's IR website, with an archive available afterward [3] Group 2: Company Overview - Triumph Financial, Inc. (NYSE: TFIN) is a financial and technology company focused on modernizing freight transactions through payments, factoring, intelligence, and banking [4] - The company is headquartered in Dallas, Texas, and its portfolio includes brands such as Triumph, TBK Bank, and LoadPay [4]

Core Viewpoint - Triumph Financial, Inc. has announced its second quarter 2025 financial results, which are available on the company's website for investors and analysts to review [1]. Financial Results - The financial results for Q2 2025 and the shareholder letter can be accessed through the company's investor relations website [1]. - A conference call to discuss these results will be held on July 17, 2025, at 9:30 a.m. central time, featuring Vice Chairman & CEO Aaron P. Graft and CFO Brad Voss [1]. Company Overview - Triumph Financial, Inc. operates as a financial and technology company focused on modernizing and simplifying freight transactions through payments, factoring, intelligence, and banking [3]. - The company is headquartered in Dallas, Texas, and its portfolio includes brands such as Triumph, TBK Bank, and LoadPay [3].