- 20 Feb
Invoice Finance For Security Companies
Security companies that are providing manned guarding services often have significant payroll obligations to meet in order to pay their staff, in many cases before being paid for the jobs that their staff are undertaking. In some cases staff have to paid weekly, whilst customers expect to enjoy credit terms of 30 days or even more.
The gap between having to pay staff and getting paid by customers can be bridged using invoice finance, which releases a large proportion of the cash that is tied up in your unpaid sales invoices, for work completed. Providing your invoices are to business customers, they are likely to be eligible for prepayments.
In addition to invoice finance for security companies, there are also payroll management services that can help you by running your payroll for you, and taking on all the paperwork that is involved.
Types Of Security Work That Can Be Funded With Invoice Finance
A broad range of different security services, providing they are billed to business customers, in arrears, on credit terms, can be funded using invoice finance. Threats such as increased fear of terrorism and cyber attacks have given rise to an increase in the variety and nature of security services demanded by customers. Types of eligible work that may be able to be funded include:
- Security guarding services - including security for building sites, retail outlets and hotels, corporate offices, event security, industrial and warehouse. Both static and mobile guards.
- Secure transport services.
- Surveillance services e.g. installation or monitoring and maintenance of CCTV and alarm systems.
- Canine services e.g. security dog patrols and search services.
- Security assessments & reporting.
- Cybersecurity work.
- Drone & robotic security services.
- Manufacture, wholesale or distribution of security equipment.
Even if your particular services or products don't appear on the list, they may still be able to be funded, if they meet the basic criteria detailed above.
How You Can Use Invoice Finance
The funding released can be used for almost any purpose. The uses of the funding that you receive could include:
- Meeting staff wages and payroll costs.
- Adding new staff.
- Settling HMRC tax liabilities.
- Paying creditors or utilities.
- Paying for training or equipment.
- Paying insurance costs.
- Funding the acquisition of other security firms.
- Expansion into allied sectors e.g. provision of cleaning services - which can often enable you to better compete, and increase revenue by cross selling services to existing customers.
Large Security Guarding Contracts
If you have an invoice finance facility in place, you are unlikely to need to turn down a large security guarding contract. As your volume of invoicing grows, so does the amount of cash that your facility releases - enabling you to pay the additional staff that you may need to deliver against a large order. The funding grows with your turnover.