What is (CID)?
Confidential Invoice Discounting (CID) is a type of financial arrangement commonly used by businesses to access immediate cash flow based on their outstanding invoices. It is a confidential form of invoice financing that allows businesses to obtain funds without their customers being aware of the financing arrangement.
In CID, a business sells its unpaid invoices to a financial institution or a specialised lender. The lender advances a percentage of the invoice value, typically around 70-90%, upfront. The remaining portion, minus fees and interest, is provided to the business once the customer pays the invoice in full. The lender takes ownership of the invoices and manages the collection process directly with the customer.