Cash Flow Support for Security, Patrol and other Protective Agencies

Today’s heightened security concerns are creating many profitable opportunities for agencies providing protection and security services. These businesses are extremely cash flow intensive as the bulk of their expenses are payroll which must be paid far faster than the payments they receive from their clients. This creates a chronic cash flow problem for growing or thinly capitalized agencies because expenses are immediate but revenues are delayed.

One solution that works well in this situation is invoice factoring. Factoring provides cash advances against new invoices which acts very much like a line of credit based on sales volume. The result is significantly reduced time between delivery of service and receipt of payment.

Many businesses can qualify for factoring support because the approval is based largely on the credit worthiness of the clients paying the invoices. Factors often are able to work with businesses that were recently turned down by banks.

Another advantage of pursuing factoring support lies in the typically quick evaluation process. Most factors will not charge you to evaluate your business for cash flow support and those decisions are often made within 5-7 business days.

Make sure your factor does not require you to maintain a minimum volume and inquire about any additional fees as some factors charge fees that appear on supplemental rate sheets.

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