CASE STUDY: Security Guard Company Expands with New Working Capital Provider

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General description:

Security services, armed and unarmed security guards

State of formation:


Customer type:

Publicly accessible facilities


This Illinois-based security staffing firm provides armed and unarmed security services and was looking to expand its footprint across its portfolio. The company already had an accounts receivable financing company in position to provide better cash flow suited to the company’s needs. However, the company began missing its payroll deadlines and began the search for a new partner.
Unfortunately, the company could not qualify for a bank loan and was constrained by the terms of their current partnership with little options for alternative providers. In addition to not being able to meet payroll, the company was also looking into a new contract with the city with the long term plan of growing their client list and doubling their volume.

Proposed Solutions

United Capital Funding (“UCF”) proposed an asset-based, accounts receivable factoring facility; which delivered a highly flexible working capital structure that is sufficient and elastic enough to grow along with their current increasing customer demand. Through this form of financing, the company was able to:

  1. Secure an adequate credit facility collateralized by their accounts receivable; then they could have otherwise achieved by leveraging their current balance sheet under a traditional revolving line of credit.
  2. Increase liquidity to support customer demand without raising additional dilutive equity capital.
  3. Expand at an integral part of the company’s life cycle without restrictive covenants.
  4. Decrease their overall Days Sales Outstanding by working with an institution that has been in business for 25 years supporting its customers with professional receivable management services.
  5. Reduce senior management’s time and energy on cash flow management and therefore, allowing greater attention on growing revenues and ensuring customer satisfaction.


The company accepted UCF’s proposed terms and was successfully underwritten and approved. We successfully transitioned this company away from its current accounts receivable financing provider and not only addressed the immediate funding needs of the company but also positioned it for sustainable growth and success as it continued its work. By working with UCF, our customers almost always gain the additional working capital necessary to support continued growth and seek additional business in new verticals and markets.

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