Invoice Finance for Security Companies

Manned guarding and security companies have an identical cash flow problem to recruitment agencies: you pay security officers weekly, but your clients pay monthly on 30-60 day terms. A contract placing 20 guards at £12-£18/hour creates a weekly payroll obligation of £10,000-£15,000 that you fund from cash reserves until the client pays. Invoice finance eliminates this, advancing 85-90% of each month's billing within 24 hours.

Why Security is a Good Fit for Factoring

Security contracts share the characteristics factoring providers love: they're recurring (months or years), predictable (fixed hours, fixed rates), and the end clients are often large corporates, councils, NHS trusts, or event venues — all creditworthy. This means security companies typically get approved quickly and at competitive rates.

The SIA licensing requirement actually helps your application — it signals to the provider that you're a regulated, legitimate operation. Mention your SIA Approved Contractor Scheme (ACS) status if you have it.

How It Works in Practice

You invoice your client at month end for all guard hours worked. Submit the invoice to your factoring provider. They advance 85-90% by the next working day. You run payroll from the advance. When the client pays (30-60 days later), the provider takes their fee and releases the balance.

For event security (one-off concerts, festivals, sporting events), the same model works but providers may want the event confirmed before advancing. Named event + confirmed purchase order = approval.

Costs for a Typical Security Company