economy
May 4, 2026
What are factoring and confirming? How they help companies in Colombia
Amidst a challenging economic landscape where cash flow becomes a constant challenge, tools like factoring and confirming are beginning to gain ground in Colombia.
TL;DR
- Factoring and confirming are gaining traction in Colombia as alternatives to traditional credit, addressing cash flow challenges.
- Factoring allows businesses to receive immediate liquidity by selling their accounts receivable.
- Confirming helps companies manage accounts payable by organizing supplier payments through a financial entity, allowing for early payment if needed.
- The growth of electronic invoicing and platforms like DIAN, along with the fintech ecosystem, are driving the increased use of factoring and confirming.
- In 2023, 1.7 million invoices were endorsed for over COP 46.7 trillion, indicating substantial growth.
- In 2024, COP 5.8 trillion were financed through factoring and confirming via fintech platforms, with a 51% increase in user companies.