In the daily life of a freelancer or an SME, cash flow management is a cornerstone. Paying suppliers on time is not just an obligation, but also a way to build strong business relationships. This is where confirming comes in, an increasingly popular financial tool that can simplify and improve this process.
What exactly is confirming?
Confirming, also known as "confirmed supplier payment" or reverse factoring, is a service offered by financial institutions that allows a company (the client) to manage the payments of its supplier invoices.
Essentially, the client company outsources its payment management to a bank. The bank, in turn, notifies the company's suppliers about the invoices they are due to collect, confirming the payment date and offering them the option to receive an advance payment before the due date, in exchange for a small financial cost.
The process is simple:
1. Issuing the payment order: Your company receives an invoice from a supplier, approves it, and sends the payment order to the confirming entity.
2. Communication to the supplier: The financial institution informs the supplier that their invoice has been confirmed and will be paid on the due date.
3. Advance payment option: The supplier can choose between waiting until the due date to collect 100% of the invoice or requesting an advance to receive the money immediately (minus interest and fees).
4. Final payment: On the due date, the financial institution debits the total amount of the invoice from your company's account.
Advantages of using confirming for your business
Implementing a confirming system can bring significant benefits for both you and your suppliers:
* Improved image and negotiation: Offering your suppliers the security of a guaranteed payment and the option of early collection positions you as a reliable and solvent client. This can give you an advantage when negotiating better purchasing conditions or terms.
* Administrative simplification: You outsource payment management, reducing administrative workload and minimizing potential errors.
* Cash flow optimization: It allows you to meet your payment deadlines without parting with your liquidity until the agreed-upon due date.
* Does not consume bank risk (CIRBE): For your company, non-recourse confirming does not count as a risk in the Bank of Spain's Risk Information Center, unlike other types of financing.
For your suppliers, the advantage is clear: they get a flexible financing channel and access to immediate liquidity, improving their own cash flow.
Confirming in the context of VeriFactu and e-invoicing
This payment management system aligns perfectly with the current drive for digitalization and the fight against late payments. The "Crea y Crece" Law, which promotes electronic invoicing for freelancers in Spain, aims precisely to improve transparency and speed up collection and payment cycles.
The adoption of tools like confirming is a logical step in modernizing business management, especially with the imminent arrival of verifiable invoicing. Remember that the VeriFactu system will be mandatory for freelancers and micro-SMEs starting from July 1, 2027. If you still have questions, you can check the complete guide on VeriFactu 2027: Deadlines for Freelancers in Spain.
In short, confirming is more than just a financial product; it's a smart strategy to optimize payment management, strengthen your supply chain, and prepare your business for an increasingly digital environment.