The Advantages of Confidential Invoice Discounting – Providing A Going Source Of Working Capital
Is your business battling with growth? Could your business be more successful if all your customers paid you in one day?
The natural inclination of a business owner or manager is to go out and sell more goods or services. The idea being that the more you sell, the more profit will end up on the bottom line. However, pursuing additional sales can bring challenges. If you do not plan carefully, you could end up in a cash crisis.
Confidential Invoice Discounting (also known as CID or Confidential Invoice Financing) is an Invoice Finance product whereby a financier will provides you with up to 90% of the value of your outstanding sales invoices, immediately. In certain circumstances, it is possible to obtain an advance of 100% of the invoice value less the Confidential Invoice companies costs.
The key to Confidential Invoice Discounting is the finance it generates, enabling a business to grow providing a going source of working capital, especially at a time when traditional bank facilities are coming under much scrutiny.
Confidential Invoice Discounting is similar to factoring but the financier does not become involved with the management of your sales ledger or the day-to-day chasing of your debtors for payments. Sales ledger Credit management remains with you. The facility releases working capital from the funds that are tied up in unpaid invoices, instantly improving you with cash flow. As more sales are invoiced, the Confidential Invoice Discounting facility grows with you. The Confidential Invoice Discounting Company will then continue to provide you with up to 95% of the value of new sales invoices, normally within 24 hours of you raising them. You will receive the balance of the invoice value, less the financier’s charges, once it is paid.
With Confidential Invoice Discounting, you retain control of your sales ledger and the facility is completely confidential, so that your customers do not know that you are using Confidential Invoice Finance.
You retain all the contact with your debtors and so your relationships with them remains unaffected.
If you are concerned about your ability to meet payroll dates because of unpredictable cash flow your business could well be a candidate for Confidential Invoice Discounting. If your business has seasonal peaks that create cash flow dilemmas, you are definitely a candidate. At the end of the day, Confidential Invoice Discounting is a very simple tool that provides you with predictable cash flow.
Confidential Invoice Discounting services maybe one of the best ways to give your existing or small business start-up the working capital boost needed to reach the next level.
Benefits Of Confidential Invoice Discounting – Where Can You Obtain Working Capital To Meet Growth Demands?
Traditional solutions usually involve trying to borrow more working capital from banks or putting more equity into the business. If you borrow more, your debt to equity ratio will start to weaken. If you inject more equity, you may dilute your ownership position by bringing in new partners. Therefore, what you really need is a way to shorten the time it takes for customers to pay.
In recent times, Banks have frequently been accused of restricting access to finance for SME’s as term loans and overdrafts are approved based on the SME’s probability of success. All too often Banks are using historical financial information to make a judgement call on future prosperity of a business. In particular, many businesses find it difficult to finance their production cycle, buying stock make the sales and then waiting 30 to 90 days before they pay. Confidential Invoice Discounting is designed for businesses that want to improve their cash flow by not having to wait 30, 60, 90 days for a customer to pay.
Confidential Invoice Discounting is not a loan it is considered off balance sheet financing in that it is not a form of debt or a form of equity, the Confidential Invoicing Company is pre paying invoices in anticipation of your customer paying.
Confidential Invoice Discounting Allows you to:
- Turn your outstanding sales into immediate working capital
- Increase sales by offering better credit terms to customers
- Meet payroll demands
- Take advantage of cash discounts from suppliers
- Reduce costs associated with debtor credit evaluation
- Eliminate cash flow imbalances due to prolonged payment terms
- Reduce outstanding debt or tax obligations
- Financing rapid sales growth
Selective Invoice Discounting, Confidential Invoice Discounting -Easy To Operate And Flexible Source Of Financing
Selective Invoice Discounting gives you the flexibility to access finance only when it is required. This simple, easy to operate and flexible source of financing allows you access to cash advances of 90% of the value of your outstanding sales ledger. Selective Invoice Discounting has grown in popularity dramatically over the last few years. It has the advantage of being switched on and off as required. Your business can then use these funds to purchase more raw materials, stock, settling creditors earlier in order to obtain settlement discounts.
No locking yourself into long-term contracts or whole sales turnover agreements. You select the invoices, the customer and the period of finance. Selective Invoice Discounting provides the flexibility when either unexpected or expected peaks in sales demand occur. The service can be used on a “add hock” basis, invoice by invoice. Switch it on or off as you like.
Selecting The Right Confidential Invoice Discounting Facility – A Challenge For Many Small Businesses Is Access To Finance
Our service has changed the way business owners discover the benefits of Invoice Discounting. Confidential Invoice Discounting facility is a long established and mainstream financing option for businesses. It has become a financial tool used by growth-oriented businesses to increase working capital. Confidential Invoice Discounting is a fast, easy and flexible way to improve your cash flow and generate working capital for your company so you can achieve the success you are striving for.
However, no two businesses are the same and no Confidential Invoice Discounting companies are the same either. Over time, the industry has acquired its own jargon, which can be very confusing to a prospective buyer.
Our role is to establish your aspirations for your company. Understand your businesses dynamics and take you through the options. There are many variables to take into account and as an Independent brokerage service, we can help make this clear. We will work with you right from inception to your first drawdown and if required thereafter until you are comfortable with the facility. This service allows our clients to compare all factors and assess the best deal available.