Security Guard Services Invoice Factoring

Speed up cash flow with fast, flexible funding and no bank obligations

If you run a security guard company, you may find yourself waiting weeks or even months to receive payment for your outstanding invoices. This can create cash flow issues that make it difficult to manage operating expenses like payroll, or your ability to take on growth opportunities. Especially if your business is new and doesn’t have the credit history (or the time!) to qualify for traditional bank financing, you may wonder what your funding options are. That’s where security guard factoring comes in.

In this guide, we explore how invoice factoring for security guards works, the benefits and limitations of factoring, and what to look for in a factoring company. We’ll also cover what you should look for when choosing the right factoring company to meet your specific needs. With security guard factoring, you can get paid quickly for your outstanding invoices, freeing up cash flow so that you can focus on growing your business.

What Is Security Guard Invoice Factoring?

Security guard invoice factoring is a financing option that provides you access to cash quickly based on your outstanding invoices. It also sometimes goes by the term security guard invoice financing (though factoring and financing are different). In a nutshell, with security guard factoring, you sell your unpaid invoices to a factoring company in exchange for cash ahead of the original payment terms. The factoring company advances you the value of your invoice (minus a fee), then takes on the responsibility of collecting payments from your customer. Once the invoice is paid by your customer, there’s no further obligation. 

The Benefits of Security Guard Factoring

Security guard factoring provides several benefits, including:

  • Improved cash flow: Security guard factoring allows you to receive immediate payment for your outstanding invoices, providing a quick and reliable source of cash flow.

  • Making payroll: Thanks to steady cash flow from faster payments, your security firm can make payroll with less stress.

  • Flexible financing: Factoring is a flexible financing option that meets the specific needs of a security company. Just make sure your factoring agreement lets you choose the invoices you want to factor, and has no monthly minimums or long-term commitments.

  • No debt: Unlike traditional loans, factoring does not create debt for your company. You also aren’t giving away equity in your business, so you remain in control. 

  • Reduced administrative burden: Factoring companies handle collections and other administrative tasks related to invoice payments, allowing you to focus on your core business operations.

  • Increased working capital: Factoring gives your business the working capital it needs to cover operational expenses, make payroll, and invest in growth opportunities.

How Security Guard Factoring Works with FundThrough

Here’s how FundThrough’s security guard factoring process works:

  1. Sign up. Create a free account or connect your QuickBooks or OpenInvoice account, and provide some basic information about your business. It only takes a couple of minutes.
  2. Select invoices to fund. Upload valid invoices into FundThrough or pull in eligible invoices from QuickBooks or OpenInvoice. Select which invoices you want to fund, and submit them in one click (after customer set up).
  3. Get funded. Upon approval, funds are deposited into your business bank account as soon as the next business day.

See if you’re qualified in minutes.

As with any financing option, both security guard factoring and banks loans come with their own pros and cons. Here are some of the benefits and potential drawbacks for each funding option:


Invoice factoring is a reasonable option to consider when you’re facing cash flow challenges and need a cash infusion quickly. It’s also a helpful additional funding source to complement bank financing. 


  • Security guard factoring provides a quick and reliable source of cash flow for covering all types of business expenses. 

  • The best security guard factoring companies use technology and other innovations to make the funding process quick and easy.

  • Factoring for security companies enable you to increase productivity and focus on core business operations by minimizing the time and resources required to manage outstanding invoices and collections.

  • Unlike traditional bank financing, which involves complicated applications and lengthy approval procedures, security guard factoring does not require a flawless credit history to qualify for funding.

  • Factoring does not create debt for your business, reducing risk and liability.

  • Receivable financing doesn’t require giving up ownership of your business to a funding partner. This means you maintain control over your company while still benefitting from a flexible funding solution.

  • Security factoring reduces the administrative burden of chasing down late payments. 


  • Some customers may be hesitant to work with you if you use security factoring services, perceiving it as a sign of financial instability — even though that’s not the case! Many successful businesses use factoring options to boost business cash flow and fund business growth. Here’s how we work with your customers.

  • There’s a perception that accounting for factored receivables is difficult, but our step-by-step guide shows you exactly how to record a business factoring transaction.


Costs for a new or growing security guard business can be significant. You may need to purchase equipment and inventory, pay employees, and keep up with rent, taxes, and marketing. You may consider taking out a business loan to cover these expenses.


  • Many security guard business loans have relatively low interest rates when compared to many other types of funding.

  • Interest can be deductible on your taxes.

  • Depending on your requirements, you may have access to large sums of money to be used to grow your business.

  • On-time repayments can help improve your credit rating.


  • Many small, growing businesses don’t qualify for a loan from banks.

  • Loans can take months to approve. You might not be able to wait if you have a growth opportunity that requires immediate working capital.

  • You’ll need to have a good credit rating. Anything else, and you may not qualify, and if you do, you’ll likely pay a higher interest rate.

  • Rates can fluctuate depending on the market if you get a variable term.

  • The obligation from a security guard business loan will show up on your balance sheet as debt, which affects the valuation of your business.

How Does Security Guard Invoice Factoring Compare With Other Kinds of Business Financing?

When evaluating financing options for your business, it’s important to consider various factors to determine the best fit. To help you make an informed decision and select the one that best meets your business needs, we’ve broken down the pros and cons of some of the most popular security guard financing options.

Lines of Credit

A line of credit (LOC) is a lot like a credit card. You can withdraw money up to a certain maximum amount determined by your financial institution. You can cover day-to-day expenses and pay back your debt, only to borrow again when needed.


  • You can borrow when you need it.

  • When you’re short of cash, you can borrow only what you need as long as you don’t exceed your limit.

  • Making on-time payments can help improve your credit score.

  • Lines of credit can have low interest rates.

  • The payments on the line of credit vary and vary depending on your outstanding balance.


  • As with loans, oftentimes banks won’t give small, growing businesses a line of credit. They often need cash faster than the process would allow, anyway.

  • There will be limits on the maximum amount you can borrow, which might not always be enough.

  • Although you pay-as-you-go, if you miss payments, are late, or move outside the terms of your agreement, you might face high fees.

  • It’s easy to misuse a line of credit (just like it’s easy to misuse a credit card).

  • If your business fails, you are responsible for any payments and debt incurred from using your line of credit.

  • You need to have been in business for years and will need to provide bank account information, financial statements, tax returns, and more to qualify.

  • A line of credit is like a loan that needs to be repaid with interest.

Business Credit Cards

Like all forms of funding, business credit cards can be helpful in the right situations.


  • It’s easier to qualify for a business credit card than for a line of credit or business loan.

  • You have quick access to the cash you need when you need it.

  • Many business credit cards have reward programs or incentives, like cash back or airline miles.

  • A business credit card can help build credit, which is helpful if you ever need to apply for a bank loan.


  • You may need to provide a personal guarantee to qualify.

  • High interest, annual fees, and late charges can add up, especially if funding a large expense.

  • Many business credit cards do not offer purchase protection.

  • Business credit cards come with security risks like fraudulent charges from unauthorized use and stolen credit card numbers.

  • You risk overspending.

Receivables Factoring

Invoice factoring is not a loan. The application process is quick. There is no repayment obligation, no high interest rates, and no debt to record on your company’s balance sheet. Plus, many more companies will qualify.


  • You have access to fast cash when you need it based on the value of your invoice(s).

  • Cash advances can greatly improve shortfalls in cash flow due to slow-paying clients.

  • Does not require your business to have a long credit history, which is best for start-ups and fast-growing firms.

  • Factoring relies on the creditworthiness of your customers, not yours.

  • Invoice factoring is easier to obtain than most other forms of funding.

  • Funding can increase with the value of your invoices.

  • If your business is seasonal, factoring can infuse cash into your business to get you through the downtimes.

  • No additional debt on your balance sheet

  • You give up no equity or control in your business in exchange for funding with factoring.



How Do You Choose a Security Guard Factoring Company (a.k.a. Payroll Funding Guard Company)?

Choosing a security guard factoring company, or payroll funding guard company if you’re specifically looking for a partner to help you make payroll, is a lot like choosing any lender: you have to know which questions to ask and evaluate the answers in the context of your situation. Here’s what we recommend asking:

Does the factoring company work with security guard companies?

Most factoring companies work with most industries, but not all. Some factors specialize in only a few industries.

FundThrough works with security guard companies.

What advance rates does the factoring company offer?

The advance rate is the portion of your invoice that the factor gives you immediately; they hold the rest until the invoice is paid and then forward you the remaining balance minus their fee. Advance rates can range from 60% to 100%, depending on the factoring company and sometimes the industry.

FundThrough advances 100% of the invoice amount, less a fee.

What factoring fees does the factoring company charge?

A factoring company should be able to provide what factoring fees it charges upfront. This can include both the discount rate – the percentage the factor keeps as their main fee – and hidden fees. A low advance rate could mean that you’ll face multiple hidden fees, so it makes sense to ask any factor you’re considering to explain their fee structure including the total cost of factoring invoices.

See FundThrough’s pricing here. We don’t charge any hidden fees. 

Does the factoring company have minimums?

A minimum is the amount you must factor every period (month, each quarter, or every year) or a requirement to fund all invoices to a customer. Some factoring companies offer plans that require minimums, while others do not.

FundThrough doesn’t require minimums. Only fund when you need to.

Is Security Guard Invoice Factoring Right For Your Business?

Cash flow is the number one problem for most start-ups and small or medium security guard businesses, especially if they’re growing. Invoice factoring companies typically consider several situations before offering you an advance.

  • Nature of business: You must be a registered business selling goods or services to other businesses.

  • Service completion: Invoice factoring is only available for goods or services that your clients have marked as complete or delivered.

  • Encumbrance-free invoice: Since invoices are the only collateral in a factoring arrangement, encumbrances such as tax liens can make it difficult to qualify for factoring. (But not impossible. FundThrough works with businesses on IRS and CRA tax payment plans all the time. We can even help you with getting an arrangement set up).


 See if you qualify for FundThrough now

Factoring invoices is a sound financial strategy if you:

  • Spend time tracking down slow-paying customers and waiting 30, 60, or 90 days to be paid.

  • If you’ve provided completed security guard services to another business.

  • If you have slow times, downtimes, or your business is cyclical.

  • You experience times of cash flow crunch.

  • You need access to working capital to grow as a security guard business.

  • You can’t qualify for a loan.

  • Your customers or clients are creditworthy.

Our Approach to Working with Different Industries

FundThrough pays invoices in days for industries outside of this list as well.

Simple. Intuitive. Invoice Factoring for Security Guards.

Built For Your Business.

Explore fast payments with an experienced fintech

Interested in possibly embedding FundThrough in your platform? Let’s connect!