Confidential Invoice Discounting (CID) Explained

Confidential Invoice Discounting is now seen as a competitive alternative to bank overdrafts.

The facility is superior to overdraft in a number of ways; it normally provides more funding, there is no need to constantly renegotiate limits, there is no requirement for charges on personal property and the finance charges are very competitive.

However Invoice Discounting has historically been reserved for larger and established businesses. Invoice Discounting firms are in business to help small to medium-sized owner managed businesses and we are able to offer this service to young and growing businesses. Key Features:

  • With Invoice Discounting you will receive advances of funds against outstanding sales invoices.
  • You manage the credit control and collect the payments from your customers.
  • The facility is confidential which means that your customers do not know about the invoice discounting.

How it works:

  • You raise and issue your invoices in the normal manner and upload your sales ledger to us via our website.
  • The provider makes¬†available to you an agreed percentage of the sales ledger (up to 80%).
  • You let the provider know how much you wish to draw down and we transfer funds directly into your bank account.
  • You chase the customers and collect payments.
  • Once a customer payment has been received then make available the 20% balance for you to draw down.


Charges are comparable to bank overdraft rates. There are two charges.

  • Administration Fee or service fee: Charged as a percentage of the value of the invoice or as a fixed monthly fee.
  • Interest charge or Invoice Discounting fee : Charged against the funds that you draw down from your funding availability.