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 4 business days, Gateway's Team delivered the security(no pun intended) we can truly appreciate"
For many entrepreneurs, starting a company of their own can be a dream come true. Like any other dream, owning your own business requires a lot of work and a little bit of luck just when you need it. In the security world, all it takes is one big contract to change a company from a small start-up to a big time player. While that sounds like the ultimate success story, it is actually more complicated that most people realize. When people rely on your company to provide critical security, then there are a lot of ongoing costs involved that suddenly become a burden when the stakes are higher.
Security companies face some of the most diverse conditions in the corporate world. A security firm can be providing security for an industrial site one week, and then suddenly find itself being contracted to provide very specialized security for an upcoming celebrity event. In order to sustain success, a security company cannot decline the opportunity to take on bigger and better business. But finding the cash to sustain ongoing operations can be extremely difficult.
The issue with a security services company that suddenly has the contract of a lifetime dropped in its lap is not whether or not its current customers pay their bills, it is the need for cash flow to bring personnel levels up to the requirements of their new clients. Even if every customer the security company has pays its bills on time, the cash flow is not going to be enough to take on the biggest contract the company has ever seen.
When a security company is handed a large contract, it usually does not have time to secure bank funding to keep its operations going. When it comes to providing funding in a timely manner, banks tend to fall short. If your security company is facing the challenge of increasing operations beyond its current capacity, then you need to talk to a receivable factoring company about their security services factoring programs.
Security services factoring will take your outstanding invoices and turn them into cash. It will be cash that you need to immediately expand your operations and it will be the cash you need to meet the needs of that new client. When you are able to immediately see to the security needs of a new and large client, that creates the kind of reputation you need to see growth you have never expected.
Security services factoring will allow you to take on as many new and large contracts as you want. With the kind of stable and reliable funding that invoice factoring offers, your security firm will be able to bring on the qualified staff you need to keep all of your clients safe and happy.