Confirming
What is Confirming?
Confirming is a service offered by financial institutions to manage a company’s payments to its suppliers. Through this tool, your company can delegate the administration of payments, allowing suppliers to receive their payments in advance if they wish to do so. This translates into greater efficiency and better control over cash flow.
Advantages of Confirming
Contracting the service: Optimise your financial resources by having greater control over your payments.
Reducing the administrative burden: Delegate the management of payments and reduce administrative tasks.
Strengthening supplier relations: Offer your suppliers the option to collect their invoices in advance.
Financial flexibility: Tailor payments to the specific needs of your company and your suppliers.
Access to immediate liquidity: Possibility to anticipate the collection of invoices without waiting for the due date.
Improved financial planning: Greater predictability in collections, facilitating cash flow management.
Reduced risk of non-payment: By collecting through a financial institution, the risk associated with non-payment is reduced.
How does Confirming work?
- Contracting the service: Your company contracts the Confirming service with a financial institution.
- Issuing payment orders: Your company issues payment orders in favour of its suppliers.
- Notification to suppliers: The financial institution notifies suppliers of payment orders issued.
- Advance payment: Suppliers can choose to collect their invoices in advance through the financial institution.
- Payment on maturity: In case of not opting for early payment, the financial institution will make payment to the supplier on the agreed due date.
FAQs
Confirming is a service that allows companies to manage their payments to suppliers through a financial institution. The company issues payment orders and the financial institution notifies the suppliers, who can choose to be paid in advance. If they do not opt for early payment, they receive payment on the due date.
Confirming improves cash flow, reduces administrative burden, strengthens supplier relationships and offers financial flexibility by tailoring payments to your needs and those of your suppliers.
Suppliers can access immediate liquidity by collecting their invoices in advance, improve their financial planning and reduce the risk of non-payment by collecting through a financial institution.
Confirming costs may vary depending on the financial institution and the terms of the service contracted. Generally, fees are charged for the handling of payments and for the anticipation of invoices, which may be borne by the company or the suppliers.
You can contact us via our contact form, and our team of experts will guide you through the process of evaluation, implementation and ongoing management of the Confirming service.
