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Triumph Business Capital Review

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Triumph Business Capital provides invoice factoring services that can help small businesses get needed cash flow, but it lacks the transparency offered by competitors. This makes it difficult to compare costs for an expensive form of borrowing. We’ll walk you through how invoice factoring works, alternatives to consider and share what we know about Triumph Business Capital.

What does Triumph Business Capital offer?

  • Invoice factoring
  • Asset-based loans
  • Equipment loans

Triumph Business Capital’s main lending product is its invoice factoring service, but it also offers equipment loans between $250,000 and $6,000,000 and asset-based loans secured with collateral. The typical asset-based loan is around $1,000,000. Triumph does not publicly disclose loan amounts, terms, interest rates, fees or requirements and did not respond to a request for more information.

The company also offers insurance and a handful of back office services including help with collecting payments, a place to store digital copies of your invoices, online account aging reports, credit checks on potential and current clients, and access to an online broker credit tool for trucking business owners.

More for trucking customers: Triumph offers a fuel discount card, discounts on third party load board services where you can find clients and a program where you can receive a cash advance to buy fuel within an hour after you pick up a load. Again, no details are provided about the cost of the fuel cash advance or how much of a discount you might get with the card.

What is invoice factoring?

Invoice factoring allows business owners to sell their company’s invoices to a factoring company in exchange for an upfront cash advance. The advance is typically up to 90% of what the invoices are worth though there are instances where you might receive up to 100% within 24 hours from Triumph Business Capital. Instead of you collecting payments from your customers, they will instead pay them to Triumph Business Capital. When your customer pays their invoice with Triumph Business Capital, you’ll get the remainder of the payment, minus Triumph Business Capital’s fee.

Triumph Business Capital: Should you apply?

Triumph does not define its fee or even what amounts it will advance. Instead, you’ll need to apply in order to get a proposed contract which will spell out all of the costs in detail.

There are risks and benefits with any invoice factoring company. Invoice factoring can free up cash fast while you’re waiting for customers to pay their bills, but it could affect your relationships with those customers who may not like making payments to an outside company. And if they are slow in paying — or don’t pay at all — you could wind up paying hefty fees on top of repaying the advance.

Triumph Business Capital’s invoice factoring comes in two flavors:

  • Recourse factoring: You’ll have to repay Triumph Business Capital for any unpaid invoices, such as if your customer goes bankrupt and can’t pay the bill. In exchange for taking on that risk, you may receive up to 100% of your invoices’ value.
  • Non-recourse factoring: Triumph Business Capital absorbs the loss from any unpaid invoices and as a result, may advance anywhere from 90% to 97% of your invoices’ value. However, some invoice factoring companies require a personal guarantee, which gives them the ability to hold you accountable for unpaid invoices if the company chooses to do so.

Unlike some other invoice factoring companies, once you decide to sell a given customer’s invoices, Triumph Business Capital requires you to factor all of that customer’s invoices. You may still choose which of your customers’ invoices to factor.

Do you qualify for Triumph Business Capital?

One of the things that makes Triumph Business Capital different is that it focuses heavily on the trucking, freight shipping and oil and gas industries. But any small- to mid-size business is welcome to apply. Credit requirements are generally lenient for business owners, but factoring companies will take a close look at your customers’ credit and payment history. You may still need to provide some basic information about your company and meet certain minimums for time in business and monthly or annual revenue.

How to apply for Triumph Business Capital

Although you can contact Triumph Business Capital by phone, email or through a form on its website, there is no way to apply online. Instead, you’ll need to call the company directly to speak with a customer service representative to apply.

You’ll need to provide Triumph Business Capital with your current invoice aging report, any official business articles of incorporation, and a sample invoice that you’d typically send to your customers.

Triumph Business Capital: Is it worth it?

Triumph Business Capital specializes in serving trucking, freight and oil and gas companies, so if you’re in one of those industries you may find financing here in addition to other services you may want or need. It also may pay up to 100% of the value of your invoices when other companies advance smaller amounts, around 90% of an invoice’s value.

But invoice factoring can be expensive. If you have customers that take a long time to pay, a better option may be to hold a large reserve fund in place, perhaps in a high-yield business savings account, to even out your business’s cash flow. You could also consider a traditional small business loan. If you do decide to pursue invoice factoring, compare costs with rivals who may provide more information about amounts you could receive and how much it will cost.

Here’s a quick look at a few Triumph Business Capital competitors:

Triumph Business Capital vs. Bluevine

Compared to Triumph Business Capital, Bluevine is a more transparent invoice factoring provider. You can factor up to $5,000,000 in invoices with weekly fees starting at 0.25%. Funding may be fast with both companies — as little as 24 hours from when you submit your invoices.

Triumph Business Capital vs. Paragon Financial Group

Paragon Financial Group is another competitor of Triumph Business Capital. It charges fees ranging from 0.90% - 2.50% for the first 30 days. Paragon Financial Group only offers non-recourse invoice factoring, so if you’d rather use the cheaper recourse factoring option in which you’re on the hook for any unpaid invoices, this may be one company to skip.

Triumph Business Capital vs. altLINE

altLINE is a division of The Southern Bank which specializes in invoice factoring and asset-based lending. This company says fees start from 0.50%, but offers few other details. However, it may still be worth applying with altLINE to see what terms it can offer you if you’re in the market for invoice financing.


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