Confirming Gedesco is a service providing payment to suppliers by which Gedesco pays the invoices of your company in advance.
These invoices would have been issued for work or services that your company would have requested.
Gedesco processes the payments without altering the terms agreed between the company and the suppliers, offering the latter the possibility of getting their invoices paid in advance.
The procedure is quick and simple. The companies only have to notify their list of orders for payment that they have pending with their suppliers, Gedesco is responsible for offering each of these suppliers the possibility of anticipating the amount of the invoices.
The following outline shows how it works:
- The company agrees payment with the supplier at X days after the invoice date, but the supplier needs to anticipate collection of the mentioned invoice
- Therefore, the company requests Gedesco to make the payments by means of Gedesco Confirming, that way trusting us with the processing of the payment to its suppliers.
- Gedesco will offer to the suppliers the possibility of anticipating settlement of their invoices at a very competitive rate of interest.
- The issuing company will not incur any cost for the payment to its suppliers through Confirming.
Advantages for the company
- No initial costs for the issuing company.
- No payment processing costs for the issuing company.
- The CCR is not affected, therefore bank risk is not altered.
- Time and payment processing savings.
- Improve your negotiating position with suppliers, obtaining discounts for prompt payment.
Advantages for the supplier
- Immediate settlement of the invoice.
- Improving its treasury planning.
- Improving its debt ratio and period for settlement.
- Security in collections, because this is a non-recourse financing.
- No approval risk-free operations.
- Without increasing CCR.
- Financing without using bank credit lines, improving treasury planning.
- Cost and outstanding collections processing savings.
Gedesco Confirming can help to improve the image of your company, because when using this service you establish a commitment to pay your suppliers on time and by the terms, which generates trust that they will not have any delays in settlements. This feature is one of the most important advantages for companies who start working with any unknown customer.
These two financing tools are normally confused with each other; therefore, it is important to establish the main differences between them:
|Factoring is a collection service||Confirming is a payment service|
|It is so your company can obtain cash||It is so your suppliers can obtain cash|
|You are, as a supplier, the one who decides to anticipate the invoice||It improves your negotiation power with suppliers|
|The supplier knows his financing is guaranteed|