Slow-paying customers can cause significant issues for any security guard business, especially since so much of your revenue is directed toward employee payroll. This allows business owners to feel more comfortable when planning cash budgets. Security guard factoring allows for more predictable cash flow compared to the traditional accounts receivable process. 1 issue for small businesses.Īnd unfortunately, not getting paid on-time is a common occurrence in the B2B world, as one study found that a staggering 49% of all B2B invoices become overdue. More Predictable Cash FlowĪccording to Intuit, not getting paid on-time is the No. This makes a huge difference for businesses operating on tight budgets. Even if your customer doesn’t pay the invoice immediately, you still receive that capital thanks to the cash advance. With security guard factoring, a third-party factoring company such as altLINE fronts 80-90% of an invoice, allowing security companies like yours to instantly unlock capital within days of invoicing a customer. This is one of the reasons factoring is particularly attractive to small business owners or startups who may not have the assets or equity required to qualify for other bank loans. Unlike many traditional bank loans, invoice factoring allows business owners to access cash fast and without collateral. Here are a few of the most notable benefits of invoice factoring for security guard companies: Immediate Access to Working Capital Without Sacrificing Assets Invoice factoring is a common solution for businesses looking to ease their accounts receivable workload and accelerate cash on-hand. Once you’ve started your security guard company and begin drafting your security guard business plan, you’ll likely find gaps where a bank loan or alternative financing method can assist with funding certain elements of your business. Benefits of Invoice Factoring for Security Guard Companies Have questions about this process, or feel ready to get started factoring your invoices? Fill out our online factoring quote form or contact us today at (205) 607-0811. Once altLINE receives and processes a customer’s payment, we release the remainder of their invoice value (10-20%) to your business’s account, minus a small factoring fee. Remainder of the Invoice Value Is Released to Your Business – Cash Unlocked! Your debtors, or clients, submit their payments to altLINE, rather than your business, which go into a lockbox in the seller’s (your business’s) name. Your Customers Submit Invoice Payments to altLINE Once we’ve received your outstanding accounts receivable, we advance anywhere from 80-90% of the invoices directly to your business’ bank account. Send Us the Unpaid Accounts Receivable That You’d Like to FactorĪfter you’ve provided a service or product and invoiced your client, you will submit that invoice to altLINE for factoring. Let’s take a look at how those four steps work for altLINE’s clients. Invoice factoring can be seen as a four-step process that is aimed to boost cash on-hand for companies that need it most. How to Sell Security Guard Company Invoices Even companies that have customers who pay on-time utilize factoring in order to improve working capital. Security guard factoring is an alternative financing method that security guard businesses use when slow-paying customers result in cash flow problems. When you factor your security guard company invoices, you are selling unpaid customer invoices to a third-party factoring company in exchange for a cash advance. You may discover that factoring is the right option to help finance your security guard company. This makes cash flow management that much more impactful for security guard business owners.įortunately, invoice factoring helps security guard businesses solve both of these potential obstacles.Ĭontinue reading to learn how security guard factoring works, the benefits of factoring, and how your business can use your cash advance from invoice factoring. Also, making payroll can be stressful when such a large part of your business’ capital is dedicated toward paying employees. First, most traditional bank loans are unattainable without significant collateral, and a security guard business likely doesn’t have the amount of potential collateral that a company in another industry, such as construction or manufacturing, might possess. This makes financing security guard companies particularly challenging for two reasons. Unlike many industries in which assets lie in the name of equipment, land, or other physical resources, security guard companies’ biggest assets are their people. 6 Get Your Invoices Paid Faster with altLINE
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