Invoice finance for security companies
Keep guards and supervisors paid while you wait for client receipts. Security invoice finance releases cash from eligible invoices for completed guarding and security services.
Invoice Funding Limited is a finance broker. Funding is subject to provider assessment and agreed terms.
Your wage bill arrives before your clients settle
Security contracts can involve weekly or monthly payroll while commercial customers pay later. Expanding a guarding contract or covering an event adds staffing costs immediately. Funding eligible service invoices can help bridge the gap after delivery.
Support guard payments
Use cash released from eligible completed shifts.
Plan contract growth
Discuss client limits before increasing coverage.
Match collections support
Choose between managed collections and internal credit control.
How the funding process works
Submit eligible invoices
Provide invoices for completed supply, together with the supporting records your provider requires. Customer limits and eligibility checks apply.
Access an agreed advance
Draw a proportion of approved invoice value within your facility limit. Initial setup takes time; ongoing release times depend on approval and the provider.
Client payment clears the balance
When the client pays into the agreed account, the remaining balance is released after the advance, fees and other agreed deductions.
Approved hours and contract deductions affect the debt
Keep rotas, attendance records, agreed charge rates and client approvals together. Penalties for uncovered shifts, service-level deductions and disputes can reduce eligible balances. Providers will also want to understand any subcontracted delivery and the customer responsible for payment.
Factoring, discounting or selective funding?
Invoice factoring
Combines funding with sales ledger and collections support. Compare how the provider will contact your customers and handle overdue payments.
Invoice discounting
You retain credit control and collections. Confidential arrangements may be available where your business and systems meet the provider’s requirements.
Selective invoice finance
Some facilities fund selected invoices or customers. Compare availability, minimum fees and whether the approach suits your regular cash requirements.
Compare factoring and invoice discounting before choosing who manages collections.
A funding example for Security
For illustration, £50,000 of eligible invoices at an agreed 85% advance rate would generate an initial advance of £42,500. This could help support the operating costs described above.
The remaining £7,500 is the balance before fees and any other deductions, normally released after the customer pays. This is an illustration, not a quote. Actual advance rates, reserves, customer limits and eligible amounts vary.
What will the facility cost?
Request a written illustration based on your customer payment pattern, expected usage and any contract deductions.
- Service fee: for managing the facility and any included ledger or collection services.
- Discount charge: usually linked to the advance outstanding and how long it is used.
- Other charges: may include setup, minimum usage, additional services, bad debt protection or termination fees.
- Contract terms: check the minimum term, notice period, security and guarantees.
Compare the total annual cost and the amount you can actually draw, rather than the headline percentage alone. Read our invoice finance costs guide.
Prepare for your funding discussion
To assess your options, a provider needs to understand your business, your customers and the debts you want to fund. Useful documents include:
- Guarding contracts and event work orders
- Approved hours, attendance reports and billing rates
- Payroll forecast and subcontractor commitments
- Aged debtor report, accounts and existing finance
Providers set their own turnover, trading history and credit requirements. Customer concentration, overdue balances and disputes can restrict availability. Tell us about existing borrowing, any security already granted and the date you need funds.
Security invoice finance FAQs
Can event security invoices be funded?
Potentially, after eligible services have been delivered and the payment obligation is established. One-off events and deposits need individual assessment.
Does funding cover licences or compliance?
Funding does not replace licensing or operational compliance obligations. Tell the provider how your business and workers are authorised for the work supplied.
What if one contract dominates turnover?
Customer concentration may restrict funding or require special approval. Supply the contract and customer payment history.
Can unpaid shifts reduce funding?
Unapproved, disputed or uncovered hours may reduce the debt accepted by the provider. Keep service evidence accurate.
Discuss funding for your Security business
Tell Invoice Funding Limited about your turnover, unpaid invoices and cash flow requirements. We can discuss potential provider options, the supporting documents needed and the differences in costs and collections.
Already using a facility? Include your current notice period and the terms you want to improve.
Funding is subject to eligibility and provider agreement. Fees, guarantees and security requirements vary. Explore other business sectors.