A Colombia Fintech report revealed that factoring and confirming financed $5.8 trillion for companies in 2024, with a 51% increase in user payer companies. These tools provide immediate liquidity as an alternative to traditional credit. Daniela Torres of Klym by Coval highlighted their strategic role in Colombia.
A Colombia Fintech report showed that in 2024, factoring and confirming financed $5.8 trillion for Colombian companies. The number of payer user companies rose 51%, establishing these models as key options for working capital.
Factoring enables organizations to advance funds from accounts receivable by assigning invoices to financial entities, providing immediate liquidity without awaiting payment deadlines. Confirming, meanwhile, focuses on payer-supplier relations: the payer company enables suppliers to advance invoice collections while preserving or enhancing its financial planning.
"Factoring and confirming have shifted from tactical solutions to key strategic pieces. Colombia is undergoing that transformation," said Daniela Torres, country manager of Klym by Coval in Colombia.
These tools are gaining prominence as complements to traditional credit, improving corporate financial management, according to the Klym by Coval report.