ErsteConfirming.
The win-win solution for
corporate clients and their suppliers
ErsteConfirming
This is how ErsteConfirming
works
For many corporate clients, the issue of optimising
working capital has moved to the top of the agenda.
Safeguarding sufficient liquidity headroom, improving
financial results and securing a stable supply chain are
central concerns for customers and their suppliers.
Step 1: The customer (buyer) provides Erste Group with the
data required for processing the payment electronically.
In this manner, the customer confirms the outstanding
invoices and instructs Erste Group to pay the invoices on the
corresponding due date.
There is, however, a „natural“ conflict of interest between
customers and suppliers regarding the agreement of
payment terms. Suppliers seek to be paid as early as
possible, while customers wish to pay as late as possible.
ErsteConfirming helps to solve this conflict – to the
advantage of both partners.
ErsteConfirming is an easy-to-use, fully automated
payment transaction product for confirmed and as yet
outstanding invoices. It provides the option of advancing
these invoices prior to due date – against a corresponding
discount on the invoiced amount. On a web-based
platform, the supplier can easily select individual or
collective bills for advancement that have been added
by participating customers. This option applies to both
national and international trade, almost without limitations
in terms of amounts and currencies.
Step 2: The supplier registers on the web platform as a
user and may then select individual invoices or all invoices
automatically for the advance payment. Any supplier
questions are answered by the supportive staff at the
ErsteConfirming Helpdesk.
Step 3: The supplier receives the payment for the selected
invoices immediately, minus an applicable discount.
Invoices not selected will be settled by the due date.
Step 4: The invoiced amount will be charged to the
customer (buyer) only at the end of the agreed payment
term.
Products and services
1. Invoice confirmation:
Following receipt and inspection of the
delivery: The electronic payment order
is transferred, including the confirmation
and acceptance of the outstanding
invoice.
Customer
2. Registration/Invoice Selection:
Invoices for advance payment can be
selected after registering on the web
platform once.
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2
4
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4. Payment:
Buyer‘s account debited
at due date.
3. Payment:
- Advanced payment
- At the due date
ErsteConfirming
Framework agreement
Payment
Supplier
ErsteConfirming – the benefits
Both trading partners can benefit from the use of
ErsteConfirming. The customer (buyer) thereby
secures the stability of his supply chain in particular,
thus winning room for negotiation. For suppliers
ErsteConfirming provides an additional attractive source
of liquidity, improvement of key financial indicators
and payment security in terms of outstanding invoices.
Overall, ErsteConfirming can reduce supply chain
financing costs.
Benefits for the customer
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Better negotiation position with respect to the supplier
Option of extending payment terms
Positive effect on key financial indicators and rating
Simplified payment management
Safer supplier base and supply chain stability
Improved supplier relations, supplier loyalty
Simple account reconciliation through return
information
Benefits for the supplier
‒‒ Quick, easy and flexible financing system without
burdening the bank limit
‒‒ No loan agreement required
‒‒ Market-relevant financing cost rates and terms
‒‒ Increased balance sheet liquidity and reduction of
outstanding supplier accounts receivable
‒‒ Improved cash flow management
‒‒ Improved creditworthiness by reducing balance sheet
total
‒‒ Implicit insurance against customer‘s default risk
‒‒ On-going information on the claims and support
situation
‒‒ No account with Erste Group required
Balance sheet effects for the supplier
Supplier‘s balance sheet
Assets
Accounts receivable –
Balance sheet effects for the customer
Customer‘s balance sheet
Assets
Liabilities
Equity capital
Bank liabilities Trade payables +
Other liabilities
Improved key financial indicators
for the customer
Liabilities
Equity capital
Bank liabilities –
Other liabilities
Reduction of total assets
Improved key financial indicators
for the supplier
++ Fewer accounts receivable on the assets side of the
balance sheet
++ Reduction of bank liabilities and total assets
++ Reduction of net financial debt
++ Increase of the equity ratio, reduction of gearing
Customer-side requirements
++ Less bank liability and more liquidity if payment terms
are extended
++ Reduction of the net debt/EBITDA ratio
‒‒ Supplier portfolio with average concentration and
average amount per invoice
‒‒ Swift invoice confirmation
‒‒ Technical ability to transfer invoices electronically
‒‒ Average to large purchase volume with corresponding
payment terms
ErsteConfirming Contact
We would be pleased to advise you further on
ErsteConfirming and to provide you with information
on prerequisites and terms.
For customers (buyer)
Robert Konrad
Erste Group Bank AG
Group Transaction Banking Sales and Implementation
Tel: +43 (0)5 0100 – 16654
E-Mail: [email protected]
For suppliers
ErsteConfirming Helpdesk
Tel. +43 (0)5 0100 – 11111
E-Mail: [email protected]
Legal notice:
Published by Erste Group Bank AG,
Graben 21, 1010 Vienna
last updated Mai 2014
www.erstegroup.com/confirming