Confirming

finance offered to supplier by financial entity, enabling company to pay at term and supplier to collect on delivery. The term 'confirming' was coined by the Spanish banks and is not to be confused with confirmation of letters of credit (see trade finance section).
 
Details of payments to certain agreed suppliers are passed on to the bank, who will arrange to pay the supplier at the due date. At the same time, the bank will communicate to the supplier that they are handling payment, and offer to discount the payment up front at an agreed interest rate. If the supplier accepts, he returns the signed agreement and receives the discounted funds immediately.
 
This type of financing may be of interest to companies who normally pay suppliers on extended terms of 60 days or over.