How does invoice factoring solve the payroll timing problem for security companies?
You invoice a client on net-30 terms for $100,000 in monthly guard services. Instead of waiting 30 days, you submit the invoice to a factoring company, receive $85,000–$90,000 within 24 hours, and use that to fund weekly payroll. When the client pays the factor 30 days later, you receive the remaining $10,000–$15,000 minus the factoring fee (typically 1.5–4% of invoice value, depending on client credit and collection time).
Can a security company factor government contracts?
Yes, and government agencies are among the most attractive clients for factoring companies — they pay reliably even if slowly. Federal government contracts may have specific assignment of claims requirements, but experienced factoring companies who work with federal contractors understand how to structure assignments properly.
What if I just won a large security contract and need startup capital?
New contract ramp-up capital — for uniforms, equipment, training, and the first few weeks of payroll before client invoices can be factored — is a specific funding need that working capital loans address. Once the contract is generating billable invoices (typically after 30 days), factoring takes over as the ongoing cash flow tool.
Can an armed security company get funded?
Yes. Armed security guard companies qualify for the same programs as unarmed companies. State licensing for armed services is a positive indicator for lenders — it demonstrates regulatory compliance and operational maturity.
Can I get funded to bid on a government security contract?
Yes. Bonding requirements, bid preparation costs, and the working capital to mobilize for a government contract award can be financed through term loans for established security companies. Government contract award letters can also serve as evidence of future revenue for lenders.
What credit score do I need to get funded as a security company business?
Programs start at 500 FICO. Scores of 620+ access the most competitive rates. Strong average monthly deposits can offset lower credit scores for smaller advance amounts.
How fast can a security company business get funded?
Qualified businesses typically receive same-day to 72-hour ACH deposits for working capital. Equipment financing closes in 2–7 business days with a vendor quote.
Can a security company business with existing loans get additional funding?
Often yes. We evaluate net cash flow after existing debt service. Existing positions are a factor but not an automatic disqualifier for businesses with strong revenue.
Do you require collateral for working capital?
No. Our working capital programs are unsecured — we do not require real estate, equipment, or personal asset pledges. A personal guarantee is standard for most programs.
Can a startup or newer business get funded?
Businesses under 6 months old have limited options. At 6+ months with consistent deposits, most programs are accessible. Equipment financing is available from day one with a down payment.