Business Loans For Security Companies

Business Loans Security

Many businesses can use financial help in getting off the ground and to stay in operation. For security companies, where there are significant start-up costs and clients take weeks to pay, a business loan may be the best bet.

How Can a Business Loan Help your Security Company?

Starting and operating a security company can be a venture that costs hundreds of thousands of dollars. A business loan can help to cover some of the expenses for your security company.

  • Payroll – In the security industry, clients can take time to pay invoices, but employees still need to be paid. A business loan can help with this cash flow problem while you wait for your invoices.
  • Cash flow shortages – Because security companies don’t get paid upfront, this can result in cash flow issues. Avoid future cash flow shortages by paying current expenses with a business loan.
  • Purchase Equipment – Security companies need expensive equipment to operate, such as security cameras, employees’ uniforms, and computers. A business loan can help to offset this expense.
  • Marketing – For your company to get clients, it needs to advertise its services. A business loan can help pay off this start-up and ongoing expense.
  • Office Supplies – A business loan can cover the cost of office supplies used by a security company, including furniture and stationery.
  • Rent – Security companies must have somewhere to operate out of. Business loans can pay for this location.
  • Business license feesBusiness license fees are payable before a security company can start operating. A business loan can cover them.

Getting a Business Loan For Your Security Company

Banks, alternative lenders, and government funding are all sources for business loans for your security company.

  • Banks – Banks have strict lending standards. If you have bad credit or are starting a new business, the bank might not issue a loan to you. Banks typically offer better interest rates than alternative lenders.
  • Alternative LendersAlternative lenders are less selective about who they issue loans to. Many alternative lenders offer loans to people with bad credit or with no business history. You can often quickly apply for these loans online. Because the lending standards are more flexible, alternative lenders offer higher interest rates than banks.
  • Government Funding – Small businesses with gross revenues of $10 million or less can apply for loans under the Canada Small Business Financing Program. Up to $1 million can be applied for. The interest rate is the lenders’ single-family residential mortgage rate plus 3% or the lender’s prime lending rate plus 3%, depending on whether the interest rate is fixed or variable.

Check out more government financing options for businesses.

Best Business Loan Providers For Security Companies 

AmountAPRTerm (months)
SharpShooter Funding1k-300kFee-Based: Starting at 9%12- 60 Learn more
OnDeck5k-300k8% – 29% 6-18Learn more
Lending Loop1k-500k+5.9%3-60Learn more
Thinking CapitalUp to 300k8%-22%6-12 Learn more
Merchant Growth5k-500k-6-18Learn more
BDC100K +6.05% +60Learn more
IOU Financial5K-100k15%+12-18Learn more

Other Financing Options For Your Security Company 

There are several other financing options available for your security company:

  • Invoice Financing – In the security industry, invoices can take weeks or months to be paid. Some clients also pay late, further restricting cash flow. Invoice financing allows you to receive a cash advance as soon as an invoice is issued, so you have cash available to cover your expenses even if your clients pay late.
  • Equipment Loan – An equipment loan is to be used on a specific equipment purchase, such as a security van, and is expected to be paid back with interest.
  • Business Line of Credit – You can take money from a business line of credit as you need it. Since you only pay interest and fees on the money you use, it can be a great way to get additional funding for licenses and equipment if your business gets a large contract.

Tips on Starting Your Security Company 

Security Business License

All security businesses must obtain a security business license before operating.

Terms of a business license:

  • Register with the province you operate in 
  • Good for 3 years
  • Can take 2 weeks to 6 months to obtain
  • Requires $1 million in liability insurance
  • You and your business partners must be of good character and have clean criminal records

Find out why you’ve been rejected for a business loan?

Understanding Your Costs

Security companies have start-up costs and operating costs.

  • Start-up costs
    • Business license fees
    • Equipment
    • Insurance
    • Legal and regulatory costs
    • Office space
    • Office supplies
    • Marketing
  • Operating costs
    • Equipment maintenance
    • Equipment purchases
    • Insurance
    • Payroll
    • Office space
    • Office supplies
    • Marketing

Keep your personal and business expenses separate by opening a business bank account.

Have a Good Business Plan

Loan providers look favourably on you if you have a good business plan.

A good business plan should include the following:

  • Your business proposal
  • A business feasibility study
  • How your business is different from your competitors’
  • Market analysis
  • Organizational and company structure
  • Human resource requirements
  • What assets the company needs to operate
  • Financial information, such as projected revenues

Business Financing For Any Industry

Own a business in another industry? Click here

Business Loan FAQs

What do I need to fund my security company with a business loan?

Although different loan providers have different requirements to meet before you can apply for a business loan for your security company, the following requirements must generally be met:
  • A satisfactory credit score
  • Age and residency requirements
  • No criminal record for you or your business partners
  • You and your business partners must be able to pass a background check
  • A business bank account
  • An acceptable business plan
  • A minimum gross monthly revenue for businesses already in operation

How do I increase my odds of obtaining a business loan for my security company if I have bad credit?

Even if you have bad credit, there is still a chance to obtain a business loan for your security company. To increase your odds of obtaining a business loan:
  • Secure the loan with an asset – Your loan will have backing from the financial value of the asset. If you put up an asset as collateral for your loan, the lender can repossess the asset, sell it, and claim the money earned from the sale.
  • Provide a business plan – Lenders like to see that business owners have clear plans for their business, especially a clear knowledge of cash inflows and outflows.
  • Use a loan comparison site to get quotes Comparing quotes on a loan comparison site will help you to find a business loan regardless of your credit history.
Can I get a no credit check business loan for my security company?
Yes, many alternative lenders offer no credit check business loans to security companies. These lenders offer higher interest rates on their loans than traditional lenders like banks, so beware of these loans.

Bottom Line

Business loans can help get your security company off the ground and can help it to navigate cash flow problems in tough times. Different lenders will issue loans to you depending on your credit history, which also helps to determine the interest rate you will pay on the loan. Because of how they can be used to support your business in an industry with slow payment times, a business loan is a great asset to any security company.

Business Glossary

Accounts Payable

Money that is owed in relation to a product or service to a creditor. Because the money is owed to an individual or entity, accounts payable are considered to be an obligation.

Accounts Receivable

Money that is owed in relation to a product or service from a borrower. Because the money is due to an individual or entity, accounts receivable are considered to be an asset.


The increase in an asset’s value over time. Appreciation is often the result of an increase in demand, weakening supply and/or changes in the economy.


Money that should have been paid and is now overdue.


The process of an impartial, independent individual or entity inspecting completed work in relation to a specific framework. Audits are commonly performed on financial statements to ensure that they are accurate, fair and align with accounting rules and regulations.

Balance Sheet

A formal financial statement that communicates the current financial position of a business at a specific point in time. Assets, liabilities and equity are all reflected on a balance sheet as well as net income (or loss) earned over a previous period of time.

Ballon Loan

Unlike regular loans, a balloon loan isn’t fully amortized over a particular period of time. Instead, only part of the loan is amortized over the loan’s term and the remainder of the loan becomes due at the end of the loan’s term. The loan’s term tends to be short and this type of financing is considered to be aggressive. 

Better Business Bureau (BBB)

A non-profit organization that assigns rankings to businesses, charities and non-for-profit corporations. The BBB collects and stores data regarding companies to set rankings. Their goal is to prevent businesses from failing to meet defined standards of operation.

Book Value

The value of an asset on a company’s books. In other words, the value of the asset on the balance sheet.


A person who buys and sells goods and services on behalf of another person in exchange for a fee.


A best guess of an individual or entity’s income and expenses for a specific period of time.

Business Credit Report

A detailed report that is meant to provide potential lenders with information to allow them to determine the business’ creditworthiness before extending credit. There is much more information in a business credit report when compared to an individual’s credit report. Business credit reports are generated and regulated by the credit bureau.

Business Credit Score

A number that represents a business’ creditworthiness based on information within the credit report. The credit bureau calculates and regulates business credit scores.

Cash Flow

The cash that comes in and goes out of a business. Cash flow is poor when more cash is going out than in. Cash flow is good when more cash is coming in than out.

Compound Interest

Earned interest that is added to the principal amount when interest for the next period is calculated. In other words, compound interest is interest earned on interest.

Debt Service Coverage Ratio

The ratio of operating income available for use to debt servicing. Debt servicing includes interest, principal and lease payments. The main goal is to determine whether or not a business is producing enough cash to cover their debt obligations.


The act of pushing something off to a later time. In terms of finances, this means paying a debt later than when it’s due or creating an arrangement where the customer receives the product or service now but pays later.


The decrease in an asset’s value over time. Depreciation is most commonly a result of wear and tear from use, but can also be a result of a decrease in demand, increasing supply and/or changes in the economy.

Earned Income

Money that is received or receivable resulting from finished, paid work.

Employer Identification Number (EIN)

A number used to identify a business regardless of whether they are a sole proprietorship, partnership, corporation or other non-personal entity. An EIN is the American version of a Canadian business number.


Something, such as money, a document or an asset, kept in the custody of a neutral, third party until a specific condition has been met.

Financial Statements

Formal records depicting the financial position and activities of a business, individual or entity. Financial statements are very structured and are subject to rules and regulations. Usually, financial statements include a balance sheet, income statement and statement of cash flows.

Fixed Expense

A cost that does not fluctuate when there is an increase or decrease in business activity, such as sales or production. Examples of fixed expenses include a full-time employee’s salary, rent and insurance, among others.

Gross Profit

The amount of money earned after considering expenses directly related to producing a product or service. Gross profit is typically calculated on a company’s income statement by taking revenue and subtracting cost of goods sold.

Incentive Stock Option (ISO)

A company benefit that gives an employee of that company the right to buy stock shares at a lower price than the fair market value. There is also the added benefit of a tax break on any profits earned from the stock share purchase.

Income Statement

A formal financial statement that communicates the income, expenses and net income (or loss) for a business over a particular period of time. 


The state of being formed into a legal corporation.


A general increase in prices of goods and services in addition to a decrease in the purchasing power of a nation’s currency.


The state of being responsible for something particular. In the business world, this typically refers to legal and financial responsibilities. 

Market Value

The amount that an asset is worth or can be sold for in a particular market place.


A small amount of money lent to new businesses with a low-interest rate. Micro-loans are typically issued by individuals as opposed to large lending bodies like banks or credit unions.


A type of business where two or more individuals share ownership, pool resources and split responsibility for the company’s operations. Partnerships can be classified as general or limited. 


The difference between the amount of money earned and the amount of money spent to earn the money.

Retained Earnings

The amount of net income left over after a business has paid out dividends to their shareholders. Often, the retained earnings are used within the business for investment, growth or capital purchase purposes.

Sole Proprietor

An individual who is the only owner of a business known as a sole proprietorship. That individual is entitled to all of the profits after all liabilities and taxes have been paid.

Tax Refund

An amount owed to or received by a taxpayer from the government resulting from taxation. A tax refund typically occurs when an individual has paid more income tax throughout the year than what was owed, has large tax credits or did not earn enough income to be required to pay tax by law.

Tax Return

A legal form which is completed by a taxpayer to determine tax payable to the government or tax receivable from the government. Tax returns require information about the taxpayer, such as annual income, annual expenses, personal information and financial information, to determine the tax asset or liability.

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