What is confirming and how it can improve your treasury

What is confirming?

Confirming (also called reverse factoring or supply chain finance) is an operation in which the bank pays your supplier for you — usually at maturity or in advance — and your SME reimburses the bank over a term. In other words: the supplier is paid on time (or earlier), and your company gains 30 to 120 extra days to pay.

How does it work?

1. You receive an invoice from a supplier (30-60 day term)
2. You submit the invoice on the platform and request a term extension
3. The bank assesses the risk of your company (not the supplier's)
4. The bank pays the supplier on the original due date
5. Your SME reimburses the bank 30 to 120 days later

Why is confirming different from factoring?

In factoring, your company advances receivables — money owed to you. In confirming, you extend payables — money you owe to suppliers. They are complementary products:

• Factoring = get paid sooner
• Confirming = pay later

Benefits for your SME

• Treasury headroom: pay suppliers 30-120 days later with no penalties
• Better relationships: suppliers are paid on time (or earlier), which strengthens the commercial relationship
• No added debt: it is not a loan — it is an extension of the payment term
• Negotiating power: suppliers who know they will be paid on time can offer better prices

How much does it cost?

Confirming is typically cheaper than factoring because the risk is lower — the bank assesses your ability to reimburse, and does not depend on third-party debtors. Typical rates in Portugal:

• Annualised rate: 1.5% to 4% (lower than factoring because the risk is lower)
• No fixed costs at Advanta

Who can use confirming?

Any SME with regular suppliers and a demonstrated ability to reimburse. The requirements are similar to factoring:

• A Portuguese company with an active tax number
• Purchase invoices with defined terms
• A history of on-time payment to suppliers
• Stable revenue that demonstrates the ability to reimburse

Confirming at Advanta

Advanta integrates factoring and confirming on a single platform. Connect the ERP once and access both products. The same risk score serves for both — the bank sees your full financial health on a single dashboard.