Security Services Finance

Security is a growth business and covers a wide range of sectors, from providing crowd control and door management at events and venues to safeguarding valuables and VIPs. It also includes provisions against cybercrime and similar threats. Security consultancy services are very much in demand, and the market is set to grow in the coming years as companies increasingly realise that they need external help to plan and defend against threats.

Services offered by a security consultancy business may include:

• Assessing and identifying security threats
• Advising on the adequacy of existing security procedures, defences and processes – and outlining areas of possible improvement
• Strategic security planning
• Providing security training to the client's members of staff
• Pre-employment screening
• Employee investigation
• Asset protection
• Crowd and door supervision

While many security tasks may simply be a matter of providing the presence of a skilled and licensed security guard, the sector is growing in sophistication, and there is an increasing need to invest in your staff and equipment. At Rangewell, we can help you find the solutions you need.

Funding options for your security business

Whether you are already running your own security business or considering starting up, we can help you find the right type of funding option to:

• Set up a new business
• Acquire equipment and assets
• Deal with operating costs
• Provide working capital and finance growth
• Deal with tax

Setting up a new security business

There is, of course, more to setting up your own security business than buying a van and a uniform. If you are to provide almost any kind of physical security, you and any staff you apply will need a license from the SIA, the Security Industry Authority. Licences are required by managers and by front-line security staff and required for most security operations, including the monitoring of CCTV and door supervision.

As a security consultant, you will be providing advice to your clients on which they will most likely act, therefore it is very important to protect yourself against problems or damages caused as a result of this. You will need both professional indemnity insurance and public liability insurance and, if you plan to take on staff, employers liability insurance.

There will be an office to pay for. You will also need funding until you become established and build a client list. You will also need a website, where clients can see you and your team and the services you offer.

You may find that raising the necessary finance is a challenge. Many lenders prefer to avoid startups, and some may be wary of the security sector. It may be simpler to buy an existing business.

However, at Rangewell we know lenders who are able to take a more positive approach and can often help arrange funding for startup ventures, as well as business acquisitions, based on solutions such as Secured or Unsecured loans.

Funding for your equipment

Your equipment needs may be moderate, with only uniforms, vehicles and office equipment as the main requirements. However, you may face substantial investment needs if you work to transport valuables and require specialist vehicles.

Asset Finance can cover most equipment funding solutions:

Hire Purchase – buying your equipment

Hire Purchase offers a straightforward way to spread the cost of equipping your business. You will need to put down a deposit, usually between 5%-25% of the total price of the asset in question, and repay the remainder, together with the interest, over an agreed period from 6 to 60 months.

You pay a fixed rate of interest and agreed monthly payments, making budgeting simple.

You may also have the option to structure your payments to fit your projected cash flow. You may be able to arrange smaller monthly repayments by agreeing to pay a final lump sum, known as a balloon payment, at the end of the loan period. This can help you reduce the cost in the early stages of your business.

Equipment manufacturers and dealers will often offer HP arrangements during the sales process. These can look very attractive, and can even include 0% options. These deals often mask hidden costs. You may be able to save money by paying cash, and arranging finance with our help. See how we can help you beat 0% finance deals.

HP can be the most appropriate solution for items such as your basic office equipment, which will continue to provide service long it is paid for.

Leasing – equipment without capital costs

With a lease, equipment is owned indefinitely by the finance company. You hire it for the period of the agreement. It remains their property, avoiding any need for capital expenditure from you. Monthly payments are fixed for the duration of the contract, and you can pay for your equipment from the income it generates each month. You may also be able to choose a lease which makes maintenance and repair the responsibility of the finance company.

Vehicles, from basic vans to armoured transport vehicles may be leased, allowing you to replace them regularly and helping you ensure a professional appearance for your business.

Contract Hire

Contract Hire is an alternative way to fund vehicles. Costs are based on the purchase cost, less the value of the vehicle after the contract period, substantially reducing the costs of operating new.

Dealing with operating costs

Once your security business is up and running you will still have overheads to fund as you build your business. Marketing will remain a substantial cost. You will need a website and an online presence, which may require substantial investment.

You may need to provide steady cashflow for the initial period when you are concentrating on bringing in business. Working Capital Finance and a Revolving Credit Facility can both be useful in providing the additional funds you need.

Working Capital Finance

Working Capital Finance can help you stay afloat and pay staff during the early stages of your business. It is designed to provide the operating expenses, from staff costs to supplier bills while cashflow is slow. It is a loan usually designed to be repaid in the short- to medium-term, once your property business is fully on its feet.

Revolving Credit Facilities

Overdrafts are a well-known form of business finance, but banks may be reluctant to provide overdraft facilities since the credit crunch. Revolving Credit Facilities can be an alternative, providing a line of credit, with an agreed limit that you can call on when you need it. You only pay for the money you take out, so it can be a cost-effective way to raise funds if you need them.

Growth Finance

Large-scale finance can be vital if you have major plans for your business, such as acquiring a competitor with lucrative contracts or taking on more people with key skills and experience.

Even if your business does not have an established profit record that lenders usually require, we can help you find solutions based on specialised Growth Finance lending.

Invoice Finance

If your income stream is based on corporate sources, you may find that there are restrictions on your cashflow as a result of late payments. An Invoice Finance arrangement can bring you a cash advance as soon as you issue an invoice, providing a flow of revenue that keeps pace with the amount of business you do.

Find out more about Invoice Finance.

Tax Loans

Large quarterly VAT bills or annual tax demands can cause problems with your cashflow, particularly when they fall at the same time as other costs.

Tax loans help you to spread the cost of your tax demands into affordable monthly payments, ensuring that your business does not have to go through cashflow difficulties because of a minor tax liability.

See how a Tax Loan can mean better control of cashflow with fixed monthly payments.

Why you need Rangewell to help you capitalise your security business

Security services businesses throw up many funding needs. Not all lenders will be able to offer the right solution for every need, or even the most competitive rate. At Rangewell we can help find the lenders and the lending solutions that are right for your business.

We know the lenders who can offer the most competitive rates for all types of finance. As well as the more conventional loan products, we can also help you find Alternative Funding, using new loan providers and innovative funding solutions.

Whether you have a straightforward, small-scale funding need which can be serviced with one product, or require a complicated ‘Jigsaw’ funding plan made up of a combination of different financial products, we can work with you to find the answers to help you make the most of your business.

Call us now to get our experts working for you.