Factoring for security guard companies: make payroll on time, even when clients pay in 35 to 60 days.
Payroll for your guards doesn't wait. Even when you invoice weekly, clients usually pay 35 to 60 days after the invoice date. Factoring turns invoices for shifts already worked into cash, usually within 24 hours, and the line grows as you add contracts. Commercial cleaning companies can use the same program.
Daniel Chirino · Business Development Officer, 1st Commercial Credit
Updated: October 28, 2026
Why security companies run short of cash
- A new account, or a client asking for more guards on call, means more payroll before the first payment.
- Recruiting and training guards keeps getting more expensive.
- Government and commercial contracts are reliable, but often pay late.
- Equipment and operating costs come before collections.
Banks lend against fixed assets, and a guard company's biggest asset is its receivables. With factoring, the line depends on your clients' credit, not yours, so it can grow as you sign more creditworthy clients.
How factoring works for a security company
Send the invoice and timesheets
The original invoice plus proof of performance, like timesheets. The shifts must already be worked.
Get the advance
After verifying the invoice, 1st Commercial Credit typically advances 90% of its value, based on your client's credit. Usually within 24 hours, often the same day.
Your client pays 1st Commercial Credit
Directly. Then you receive the rest, the reserve, minus the fee, by ACH or wire.
What 1st Commercial Credit offers security guard companies
The offer
- Rates from 0.69% to 1.59%, depending on your volume, how fast your clients pay and their credit.
- From about $10,000 a month up to $10 million for larger companies.
- Setup in 3 to 5 working days, with same-day decisions.
- No financial statements required.
- No upfront, hidden, facility or audit fees. No monthly minimums and no invoice minimums.
- New companies with signed contracts can qualify, even without a long credit history.
What you'll need
- Original invoices with proof of performance, such as timesheets.
- Completed services: shifts are funded after they're worked.
- A review of any liens and pending lawsuits against your company.
- For each new client, just its name and address for the credit approval.
Tools for guard companies
Software with time clocks and automated timesheets, staff scheduling, geo-tracking, field reporting, invoicing integration and automated funding schedule submission. Optional payroll, tax and back-office services.
Source: 1st Commercial Credit's security guard companies page, read October 28, 2026. Rates and terms are confirmed in writing before you sign.
Commercial cleaning and janitorial companies
Cleaning companies face the same gap: payroll is due far sooner than the 30 to 90 days commercial clients take to pay. 1st Commercial Credit funds janitorial companies through its service providers program, for invoices to commercial accounts only.
- Rates from 0.69% to 1.59%, depending on your volume, how fast your clients pay and their credit.
- Facilities from $10,000 to $10 million. Setup in 3 to 5 days.
- No financial statements required. Low credit scores accepted.
Source: 1st Commercial Credit's service providers page, read October 28, 2026.
When factoring is not the answer for a security or cleaning company
- Your clients pay weekly or on receipt. There's no gap to cover.
- You clean homes. Janitorial factoring is for invoices to commercial accounts only.
- The shifts aren't worked yet, or the client disputes the hours. Factoring is for completed, verifiable services.
- The problem is margin, not timing. If a contract loses money, getting paid faster only loses it faster.
Questions security company owners ask me
How do my clients pay?
They pay the invoices directly to 1st Commercial Credit. Once the payment arrives, you receive the rest minus the fee.
I just started my company. Can I qualify?
New security companies with signed contracts can qualify, even without a long credit history.
How much do you advance?
Typically 90% of the invoice, based on your client's credit. The rest is held as a reserve until the client pays in full.
Can you help with payroll?
Yes, as an option. Beyond factoring, 1st Commercial Credit can handle payroll, tax services and other back-office work.
Who are your clients?
Tell me who you guard or clean for and how long they take to pay. I'll tell you if factoring makes sense for your company.
Also read: how invoice factoring works · staffing · government contractors