Security Guard Company Merchant Cash Advance & Business Funding
Merchant cash advance for security guard companies.
Security guard companies can get a merchant cash advance to cover payroll on new contracts. Guards are paid weekly while clients pay invoices on 30 to 60 day terms, and a new contract widens that gap. Staffing is steady nationally. Funders look closely at contract length and how much comes from the biggest client.
How do funders read security guard companies?
Funders read contract terms, renewal history and client concentration. A signed contract with a creditworthy client helps.
How does money come in for security guard companies?
Revenue is almost all contract billing paid by ACH or check. Payroll is weekly and it's the largest cost. Event work can add short bursts of revenue and staffing.
Which months are slowest for security guard companies?
This table shows how many people private security guards and patrol services (NAICS 561612) businesses employed each month, as an index where the year's average is 100. It comes from the Bureau of Labor Statistics Quarterly Census of Employment and Wages, the most recent full year available. Staffing is a stand-in for how busy a business is. Deposits can move more or less than headcount, so read it as the shape of the year, not your numbers.
| Month | Staffing index (average = 100) | |
|---|---|---|
| January | 100 | |
| February | 99 | |
| March | 98 | lowest |
| April | 101 | |
| May | 101 | |
| June | 98 | |
| July | 100 | |
| August | 101 | |
| September | 100 | |
| October | 102 | highest |
| November | 101 | |
| December | 99 |
The low point is March at 97.9 and the high point is October at 102.1, a swing of 4.1 points. Headcount shifts a bit around events, but the line is mostly flat.
| Quarter | Total payroll index (average = 100) |
|---|---|
| Quarter 1 | 98 |
| Quarter 2 | 98 |
| Quarter 3 | 98 |
| Quarter 4 | 105 |
Payroll by quarter can rise at year end for reasons like bonuses and overtime, not only more work.
What do security guard companies use merchant cash advances for?
- Payroll for the first weeks of a new contract.
- Uniforms, radios and patrol vehicles.
- Licensing and training for new guards.
- Insurance a client requires.
- Scheduling software.
What does an advance payment look like in a slow month?
Staffing barely moves through the year here, so the slow month to plan for isn't seasonal. Say a large client pays a month late and deposits come in 20% under average. Say a business like yours deposits $200,000 in an average month and carries a fixed payment of $20,000 a month, 10% of that average:
| Deposits | Fixed payment | Share of deposits | |
|---|---|---|---|
| Average month | $200,000 | $20,000 | 10.0% |
| A month 20% below average | $160,000 | $20,000 | 12.5% |
A fifth less in deposits turns a 10% payment into 12.5%. Keep a cushion for it, or ask how reconciliation works before you need it.
Which funding options fit security guard companies?
Each page runs one option against this industry's slow months.
Same-day merchant cash advance for security guard companies
Money the same business day for an urgent cost, with the fixed daily debit measured against a slow month.
Business line of credit for security guard companies
A draw sized for a slow month, repaid in thirds, with the interest on the balance worked out.
MCA consolidation for security guard companies
One payment in place of two, with the share of deposits before and after in a slow month.
Second position MCA for security guard companies
What a second advance adds on top of the first, and what both payments take from deposits in a slow month.
Revenue-based financing for security guard companies
A remittance that moves with revenue, so a slow month sends less, and the months to reach the repayment cap.
Run a business like this?
Tell us your slow months up front and we'll look for funders that size for them. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.