Increase goodwill with the suppliers. Follow others, such as cardiologist, and add to your knowledge base. It facilitates the reconciliation of control accounts and cash. Avoid the issuance of notes, checks and bills of exchange and the manipulation thereof. Avoid incidents that occur in the standing orders. Provides better control and planning of cash needs. More info: Mark Hyman, MD. It provides immediate funding to suppliers, when the organization offers providers the opportunity to advance.

For the company that incorporates the management service payments to its suppliers, the main benefits are: – Improve your image with its suppliers to be guaranteed payments for a financial institution – Avoid costs of issuance of promissory notes and checks or handling of bills of exchange – Avoid any incidents that occur in the standing orders – Avoiding phone calls from suppliers to inquire about the status of their invoices – Prevents tracking accounts to reconcile different charges bills, notes or checks – The company maintains the initiative Payment – Get helpful information on the management of procurement for suppliers, the benefits that the service of confirming reports are basically the following: – They can get their invoices paid in cash, after deducting financing costs, completely eliminating default risk – They get the award of a line of credit without limit and without using their own credit – to avoid paying stamp, who did not passed to their customers, to manage the collection through transfers or transfers have not forget this as says what, that banks tend to improve the financial conditions for companies that choose to pay through a confirming his, is a very important step in linking with the financial institution.

What’s more, this financial improvement is thickened by the assignment of commissions that the Bank generally agree with his client. This we will see better from the standpoint of the Bank. For the Bank, to ensure that a client of his (usually large and good business) through the issue confirming it is something sweet. It ensures a very strong bond with the company, which will centralize their balances there, you will sign a policy that covers the risk by total current payments, etc. Without wishing to be exhaustive, perhaps the main advantage is that confirming that allows providers to approach his client in a very advantageous compared to competition. First, it is a document that is technically not a commercial effect, and therefore can not be discounted (and if you do, or something similar, we’ll see it has its danger), so its advance in the competition this difficult. In addition, the issuer of confirming assures recovery. Obviously all this is paid and is generally confirming that the substantially more expensive than commercial off the best that we can choose to bank competition. We are talking about high rates and relatively strong commissions (these are the fees that are partially or completely transferred to the company which is issued confirming).