Confirming house
Encyclopedia
A confirming house is a specialised UK agency that purchases and arranges the export
of goods on the behalf of overseas buyers. They finance the movement of goods into the country by offering short-term credit to importers and guaranteeing, or confirming, payment to the suppliers in the suppliers own domestic currency. The confirming house usually negotiates the price with the suppliers, ships, insures and provides information on the goods on the overseas buyers behalf.
If the overseas buyer is unable to pay for the goods the suppliers are liable to refund the confirming house. Most confirming houses have overseas offices that assist the supplier in assessing the creditworthiness of the buyer ex-ante
.
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
of goods on the behalf of overseas buyers. They finance the movement of goods into the country by offering short-term credit to importers and guaranteeing, or confirming, payment to the suppliers in the suppliers own domestic currency. The confirming house usually negotiates the price with the suppliers, ships, insures and provides information on the goods on the overseas buyers behalf.
If the overseas buyer is unable to pay for the goods the suppliers are liable to refund the confirming house. Most confirming houses have overseas offices that assist the supplier in assessing the creditworthiness of the buyer ex-ante
Ex-ante
The term ex-ante is a neo-Latin word meaning "before the event". Ex-ante is used most commonly in the commercial world, where results of a particular action, or series of actions, are forecast in advance...
.