Security Agency Invoice Factoring
Meeting payroll is the highest priority for security guard company owners. However, this can present a problem for security guard companies that are growing - but not well capitalized. Guards need to be paid weekly or biweekly. However, commercial customers usually pay their invoices in 30 to 45 days. This can create a cash flow problem because few security agencies have the needed reserves to wait that long for payment - especially if they are growing. The solution to this problem is to factor your invoices.
Factoring rates as low as 1.5%. Advances as high as 90%.
Click here for a quick quote or call (866) 730 1922.
(subject to monthly volume and industry).
How does it work?
Invoice factoring solves the problem of slow paying security customers by providing an advance on your slow paying invoices. Your agency gets the benefits of immediate revenues while the factoring company waits for payment. The transaction concludes once your customer pays. However, many temporary security agencies factor invoices regularly to help ensure they have adequate cash flow.
How does a transaction work?
The process of factoring your invoices integrates well with most companies. The majority of transactions follow this format:
- You deliver the security services
- You invoice your customer, and send a copy of the invoice and timecard to the factoring company
- You get an initial advance of 90% of your invoice.
- Once your client pays the invoice, you get a second advance with remaining 10% (less fees)
What are the benefits?
The obvious benefit for your security agency is that your cash flow will improve dramatically. Some additional benefits include:
- Ability to take on new customers
- The line adapts and grows with your revenues
- The line can be setup quickly
How does my company qualify?
To qualify, your business must:
- Have unencumbered invoices
- Have commercial customers that are creditworthy
- Be clear of major legal/tax issues
- Be profitable - or in the path to profitability.
For more information, please visit our Factoring Resource Center or read the following articles:
- Invoice factoring basics
- What is factoring? How does it work?
- Invoice factoring financing for security guard companies
- Financing your security guard company
Get an online quote now! Questions? Call (866) 730 1922. Services in the USA and in Canada.