With increased awareness of crime, the security industry in North America is currently booming. To provide top-notch security services, you need to not only pay your security guards upfront but you often need to invest in state-of-the-art technology, security devices and transportation, among other financial obligations.
Funding your security guard company
The nature of security guard services requires you to pay upfront for products and services, but you often have to wait 30 or 60 days before receiving payments from clients. This constant tug-of-war for cash can put your business at a disadvantage.
If you have found that you are turning down large, lucrative projects because you are concerned that your working capital won’t be able to cover the overheads involved with completing the job, then it’s time to start researching alternative funding solutions. Cash flow is often a problem in any growing business, but it shouldn’t hinder you from taking on new clients and taking your business to the next level.
Security guard company factoring services from Interstate Capital can close the gap between your ongoing expenses and your income. Not only do we ensure prompt payments for invoices, but we give you the positive cash flow that you need to take your business to the next level. For more information about how factoring services can help your security business, get an instant factoring quote today.
How factoring for a security guard company works
Factoring companies who have dealt with security companies in the past will know that you have ongoing expenses each month. Not only do you have to pay your security guards, but you also have to invest in the right equipment and offer tailored services to your clients.
When you sign on a new client, complete a job or project and send us the invoice, then we will advance you a large portion of the invoices. That way, you will have the cash flow you need to cover your monthly and weekly expenses. Once your client pays the invoice in full, we will pay you the remaining portion of the money minus a small factoring fee.
No limits funding potential
One of the main drawing points of factoring for security companies is that there aren’t any funding limits. With a traditional bank loan, for example, you will be limited to how much you can borrow. With factoring, your line of credit will continue to expand as you take on new clients and complete more jobs.
Another benefit of factoring is that the factoring company doesn’t need you to provide a long list of assets or have a substantial credit history. With factoring, the service provider is more concerned about your clients’ ability to pay you as opposed to your credit history.
Reduce security administrative costs
One advantage that many security guards don’t consider when partnering with a factoring company is the benefit of someone else handling the administrative duties related to background checking new customers, following up on outstanding invoices and collecting outstanding invoices. These value-added services can save you and your company a significant amount of time and money.
Take on more government contracts
As a security company, one of your goals might be to take on more government projects. With factoring services at your disposal, you will be able to pursue these deals and rest assured that your factoring company is supporting you every step of the way.
About Interstate Capital
Interstate Capital has funded over 10,000 companies since 1993, making it one of the oldest and largest factoring companies in the alternative funding market. Interstate Capital purchases nearly $1 billion dollars of invoices annually from hundreds of clients in a wide range of industries throughout North America and each client receives individual attention from a dedicated account manager. Get in touch with us so that you can learn more about the factoring programs designed for security services firms. Let us customize a program for you.