Payroll is the business
A security company sells people. Most of every contract dollar goes to guard wages, payroll taxes, insurance, uniforms and supervision, and those costs have to be paid on a fixed weekly or biweekly schedule. The client, whether it is a property manager, retailer, event organizer or construction site, pays on the invoice cycle in the contract. So the guard company is always funding the labor it provided last month with the cash it needs for this month.
Winning a contract costs money first
- You are awarded a new site and need to staff it within days.
- You recruit, screen, train and equip guards, including uniforms and radios.
- The guards work the first weeks and are paid.
- You invoice at the end of the period, and the client pays on terms.
A new site can require a month or two of wages before the first payment arrives, and a company that wins several sites at once may be stretched thin even as revenue grows.
Other costs that arrive early
| Cost | Detail |
|---|---|
| Insurance | General liability and workers' compensation are large and frequently paid in installments |
| Vehicles | Patrol cars, fuel and maintenance for mobile services |
| Technology | Scheduling, reporting and monitoring systems |
| Overtime | Event coverage and call-outs push labor costs up quickly |
| Supervisors and admin | Needed from the first shift on a new account |
Regional picture
Security work is spread across commercial districts, retail centers, industrial areas, residential communities and event venues. Companies in the Los Angeles area, the Inland Empire and the Bay Area see a variety of client types, from a single storefront to a multi-building campus. Large clients often have formal accounts-payable procedures that pay on a monthly cycle, which keeps the guard company in a continual funding gap.
A worked example, for illustration only
For illustration, a company with 20 guards wins a contract that needs 10 more on site. Weekly payroll and associated costs for the added crew come to $12,000, and the client pays on a net term that begins after a monthly invoice. The company is funding more than two months of added wages before the first full payment. Working capital lets the owner staff the site properly instead of understaffing to save cash. These figures are not our terms or a typical outcome.
How to apply
If a new contract needs guards before the first invoice can be paid, a funding decision based on your bank deposits can help you start on time. The application takes about five minutes. We ask for roughly three months of business bank statements and use a soft credit pull; no tax returns are required. FICO 500 and above is considered, funding runs from $25,000 to $5,000,000, and money can arrive in as little as 24 hours. Sole proprietors can apply. Start your application.