If you are a business owner looking for ways to grow your company then there are a few good options which could have a huge impact on the success of your company. One of the most effective is a service called confidential invoice discounting (CID). This is something that is quick and easy to implement which could help you to grow your company and provide a substantial cash flow solution.
What is CID?
So, what exactly is CID? This is a service that allows you immediate access to the cash that is tied up in invoices from customers which have not yet been paid so that you do not have to wait the usual 30-120 days. CID advances payments from your outstanding sales ledger to free up cash which can then be used as you wish which could include additional jobs, wages, materials etc. Once the invoice falls due, the lender will then receive payment from your customer but the customer will not be aware of this. If there is money that you did not receive from the invoice, this will then be forwarded to you.
Benefits of CID
Being able to access this money can have a huge impact on the company. First, you could use this money to reinvest back into the company and make improvements without having to wait up to 120 days. This reinvestment could involve paying your staff, covering the costs of transportation or covering the costs of materials. This cash flow solution can also increase your growth and allow you to take your company to the next level – this is a huge obstacle for businesses but one which can be made much easier when you use CID.
Importantly, CID also allows you to retain control of your sales ledger management and maintain customer relations. Your customers will not be aware of how you choose to find your business and it will not impact your relationship with them whatsoever as it is completely anonymous. This makes it a better financial solution than many other methods and one which any business owner looking to boost growth should seriously consider.
Implementing CID
To benefit from CID you will need to use the services of a company like Touch Financial who will be able to help. There are costs involved in using the service, but ultimately it should prove to be an intelligent business decision if it can help you to grow your company, boost productivity and reinvest back into the company. It is an ideal tool for those that prefer to keep their credit control function in-house while making sure that your invoice finance facility remains confidential.
CID is a helpful tool that could be used by businesses in all industries. By allowing you access to the cash in unpaid invoices from your customers almost immediately it enables you to use this money intelligently to better the business without your customers knowing. Cash flow can pose a serious problem for business owners and particularly in the early stages, but CID can take the stress out of this and ensure that you have the money that you need to grow your company.
