1. Why Security Companies Need Funding
Security companies come from an industry that often face serious costs involved with system upgrades, hiring security officers, and acquiring other related vehicles and equipment. Having a flexible line of credit obviously helps security companies continue to provide quality services to their customers, however what if the company doesn’t have a flexible line of funding? That’s where factoring comes into play. Factoring is a form of funding that can offer security companies the working capital they need and when they need it, without adding more debt to the company’s budget.
2. Why Security Companies Choose Invoice Factoring
With any cliental company, much like security guard companies, they are rarely paid up front for their services or products. With having to finance other obligations such as payroll, security business owners can leverage factoring as a way to receive cash for their accounts receivable without increasing their debt, and use the money to increase their workload or job volume. Invoice Factoring is a key alternative for security companies that are young and may not be qualified for a traditional bank loan or older security companies who may have poor credit. For security companies in a financial bind or security companies looking to not take on any new debt, Durham Commercial Capital offers a solution through our factoring program.
3. How Factoring Benefits Security Companies
Security companies can benefit from using Invoice Factoring because the process provides them with working capital immediately. After they receive the cash from selling their accounts receivables to Durham, they can then use that money to help payout payroll, buy new equipment, or expand the business without having to wait on customer payments to be fulfilled.
4. How Durham Commercial Capital Can Provide Factoring For Security Companies:
Durham knows that in the security industry waiting on service payments is frustrating, especially when trying to maintain a steady cash flow for other pressing business expenses. When lack of available funds affects your security company’s ability to pay employees or obtain new equipment to fulfill client demands, Durham’s factoring is your solution. After Durham buys your company’s receivables, we provide you with immediate cash, then collect the outstanding invoices directly from your customers.
5. What kind of Security Companies Use Factoring
- Start-ups experiencing fast growth but need working capital immediately to do so
- Security Companies with limited credit lines
- Companies with obstructed cash flow because accounts receivable are fulfilled slowly
- New or old security companies who have a bad credit history
Take a closer look at how Durham Commercial Capital’ Factoring program can help your business here!