Bank Payment
It homogenized the system of payment to suppliers. Wholesale prestige to providers. Under most conditions Western Union would agree. It facilitates the reconciliation of accounts and Treasury control. Avoid the issuance of promissory notes, cheques and bills of Exchange as well as the handling of them. Avoid incidents that occur in the direct payments of receipts. It allows better control and planning of the cash requirements. It facilitates providers immediate funding, when the entity offers the possibility of cash advance providers. For his part, lasasesorias.com.es point: for the company that incorporates this management of payment service providers, the main benefits are the following: – improves its image before its suppliers to be guaranteed your payments by a financial institution – avoids costs of issuance of promissory notes and cheques or bills of Exchange manipulation – prevents incidents that occur in the direct payments of receipts – avoids phone calls from suppliers to find out about the status of their invoices – prevents the follow-up to different accounts to reconcile letters, promissory notes and cheques – charges the company maintains the payment initiative – gets great help information in the procurement management for providers, the benefits that their reports confirming service are basically as follows:-can collect their invoices in cash, prior deduction of the financial costs, completely eliminating the risk of non-payment – obtained the grant of a line of credit without limit and without consuming your own credit – avoid payment of ringers, who does not impact them to their customers, to manage payments through transfers or transfers do not forget to keep in mind as it says pymesyautonomos.com, which banks usually improve the financial conditions to those companies that opt to pay through a confirming him, assumes a very important step in bonding with your financial institution.
But it is also that financial improvement is seen thickened by the assignment of commissions which the Bank usually agree with his client. This we will see better from the standpoint of the Bank. For the Bank, get a client of yours (generally large and good companies) issue confirmings through it, is something sweet. Ensures a very strong bond with the company, which shall centralize their balances there, who must sign a policy that covers the risk for total payments in progress, etc. Without wanting to be exhaustive, perhaps the main advantage is that confirming allows approaching providers of your customer in a very advantageous way against the competition.
Firstly it is a document that, technically, is not a commercial effect, and therefore can not be discounted (and if it becomes, or something similar, we’ll see having its danger), so your advance payment in the competition this difficulty. In addition, the issuer of the confirming ensures collection. Obviously all this is paid and is the confirming tends to be substantially more expensive than the best commercial discount to which we can choose with banking competition. We are talking about high rates and relatively strong commissions (these are the commissions that are partially or fully transferred to the company which is issued confirming).
