Security Finance is for companies the provide security services, technology and/or hardware to commercial or governmental entities. Security Finance is typically used as working capital to cover the gap between making payroll to receiving payment from the customer. Security Finance can also be used to procure security hardware and software based on purchase orders from credit worthy customers.
The most common type of security funding are:
- Asset Based Lending
- Invoice Factoring
- SBA Loans
- Contract Finance
- Cash Flow Loans
The type of security finance that is available to your company will initially be based on the use of proceeds. If the funds are going to be used for payroll and expenses asset based lending or invoice factoring is a good solution. If the Company has received a large order or contract, contract finance or cash flow loans may be the right solution.
Security companies that are utilizing security finance for payroll purposes typically can enjoy high advance rates and low fees. At Commercial Finance Partners we understand the margin pressures that certain industries present and adjust our programs accordingly. In some cases we can even provide an advance on contracts that have mobilization requirements to get the job started.
While there are several forms of security finance available, each has its positives and negatives. In many cases more than one form of financing can be used to generate capital. Choosing the right working capital facility with the right lender can make all the difference.
Call us now at 855-424-2958 to discuss your security finance options! Or fax us at (855) 450-0885.
Customized Financing Options
Asset Based Lending
Revolving lines of credit up to $20,000,000
Accounts Receivable Factoring
No minimums, up to $20,000,000
Secondary lines of credit for ABL or Factoring
Equipment & inventory facilities
Great for staffing & temp agencies