Security Services Factoring - Security Company Cash Flow Financing
Security Guard Factoring: How It Helps Security Companies Grow and Stay Secure
Ensuring the safety of people and assets is a round-the-clock responsibility. Whether your team is armed or unarmed, running gates, event security, conducting patrols, performing remote monitoring, or providing executive protection, steady cash flow is essential. Weekly payroll, insurance costs, outfitting new officers, and managing overhead create constant financial demands. Waiting 30, 60, or even 90 days for customer payments can make meeting these obligations on time extremely challenging.
Real-World Success: Unified Security Services
It's about Security
When Unified Security Services landed a major contract, cash flow security was a top priority. After successful careers in law enforcement, both Bill and Don were ready to put their years of experience to good use.
“I remember how excited we were to depart the public sector and move into private security services. We had a wealth of contacts to draw from, and opportunities for our services were everywhere. We had sufficient working capital to start the business and carry our 60-person weekly payroll. Then, we hit the big league”.
When Unified needed additional money to mobilize for a new contract, there simply was not sufficient cash to go around. “Our customers are excellent payers… but simply not fast enough. Our banker recommended Gateway Commercial Finance to solve our working capital dilemma. Within four business days, Gateway’s Team delivered the security (no pun intended) we can truly appreciate.”
Cash Flow Security
Managing payroll can be challenging for security guard companies, especially when dealing with unpaid invoices and inconsistent cash flow. Security firms can grow dramatically overnight, outstripping cash reserves and inadequate credit lines.
Unfortunately, banks are rarely able to move quickly enough to help when a big contract requires rapid scaling. The opportunity may have passed by the time the review process is complete.
The Solution? Factoring for Security Guards
That’s where invoice factoring comes to solve cash flow challenges. Instead of waiting for client payments to trickle in, you can turn your outstanding invoices into cash immediately. Here’s how it works:
- You Sell Your Invoices: You sell your outstanding invoices to a factoring company. In return, the factoring company advances you most of the invoice value upfront, typically 85%- 92%.
- Get Paid Fast: You don’t have to wait weeks or months to get paid. The factoring company pays you within days, giving you the cash you need to keep your operations running smoothly.
- No Debt: Unlike a traditional loan, factoring isn’t borrowing. You’re getting paid for the work you’ve already done.
Once your client pays the invoice, the factoring company sends you the remaining balance minus a small factoring fee for their services. This means your cash flow becomes predictable and consistent, even when your clients have extended payment terms.
Factoring Isn't Just for Big Security Guard Businesses– Startups and Small Companies Benefit Too
It’s important to note that factoring is not just for large or established companies. Startups and smaller security companies can also benefit from factoring in various situations. Whether you’re just getting started or have a steady stream of clients, factoring for security companies provides a lifeline for businesses of any size.
Here’s how factoring invoices helps security companies:
Getting Through the Startup Phase
When you’re just starting out, access to credit or loans can be challenging. Many banks hesitate to lend to new businesses with limited history, leaving you to bootstrap your operations. Factoring provides an alternative: turning your unpaid invoices into cash, allowing you to manage early-stage growth expenses without incurring debt or waiting for long payment cycles.
Covering Ongoing Expenses
Even if you have a handful of smaller clients, the ongoing costs of running a professional security guard company (payroll, uniforms, equipment) can add up quickly. Factoring ensures you can pay your guards and vendors on time, even if your clients are slow to pay.
Scaling Without the Hassle
For a small or growing security company, landing a contract with a new client can be exciting—but challenging if you don’t have the funds to scale up quickly. Factoring gives you access to fast cash so you can hire more staff or purchase additional equipment to meet demand, regardless of the contract’s size.
Avoiding Debt
Unlike loans that need to be repaid with interest, invoice factoring allows you to access the money you’ve already earned without adding debt to your balance sheet. This is especially helpful for small companies that want to maintain healthy financials and avoid taking unnecessary risks.
Why Gateway Commercial Finance is your best choice for security company factoring
At Gateway Commercial Finance, we understand security guard companies’ unique financial challenges—whether you’re landing a major contract or just starting. You need to pay your guards, buy new uniforms, maintain equipment, and ensure you’re fully staffed, all while waiting for those invoices to be paid. This becomes even more complicated when dealing with unpredictable schedules or high turnover.
Since our inception, we’ve supported hundreds of security guard companies and understand your business.
Our security guard factoring services provide quick and reliable access to working capital, helping you cover payroll, equipment, and operational expenses without waiting for clients to pay. With fast approvals and flexible terms, we can help your company stay financially secure while you focus on what you do best: keeping your clients safe.
Ready to take the next step? Contact Gateway Commercial Finance today. Our team is here to answer your questions and help you explore how factoring can help you grow your business.
Call us at 1-855-424-2955 or fill out the factoring quote form to speak directly with a decision-maker. Let’s discuss how we can provide the cash flow security your business needs to thrive.