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When Celtic Hills Security needed to secure capital, they relied on factoring

Celtic Hills Security is a private security firm based in Kansas City. The firm provides security for a broad range of area businesses, including construction sites, retail strip malls, and residential complexes. Individuals also contract with Celtic Hills for security at parties, weddings or when someone needs personal protection.

With over 40 years of law enforcement experience and 10 years in business, Celtic Hills Security was poised for a big win. Little did they know the challenge ahead and the vital importance of capital when hyper growth occurs.

Good news, bad news

The cash flow problems occurred when Celtic Hills Security had the winning bid to provide security for several gated residential properties. One of the properties was more than a square mile in size and included 900 residential units and three pools. There was also a kicker. The property management company wanted Celtic Hills Security to start in 5 days.

“When we signed our biggest client to date, we were worried that our company wouldn’t be able to keep up with the costs of providing the world-class service that we promised to deliver,” said Tracy Hill, president of Celtic Hills Security.

To provide that world-class service, the firm would need to hire eight new guards, two of which needed to be licensed to carry a weapon, plus a new vehicle just to service the largest property. This meant a sizeable cash outlay to interview, hire guards and pay wages, as well as purchase a vehicle and license and insure it. In short, Celtic Hills Security needed access to working capital to make everything happen.

Like most businesses in this situation, Celtic Hills Security visited with their bank. Unfortunately, while the banking relationship was strong, collateral required for credit was lacking. The firm’s banker was nice enough; it was just a case of hands being tied.

Factoring saves the day

Celtic Hills Security hit on the idea of factoring to gain the necessary capital to fund expenditures and facilitate growth. Factoring works by turning customer invoices into cash payments. By using invoice factoring, the firm could practically self-fund their growth with their biggest client.

But which factor made sense to work with? QC Capital Solutions offered the perfect fit based on size, service, fees and a keen understanding of Celtic Hill Security’s business dilemma.

“QC Capital Solutions approved our application and got us funded in just a matter of days,” said Tracy. “Not only did we need to cover the extra payroll, but we also needed to put down payments on a couple of vehicles too.”

That led to another advantage with factoring that QC Capital Solutions was especially proud of.

“Early pay down of the first vehicle created an opportunity for Celtic Hills to replace two additional vehicles at more advantageous terms, ” said J.D. Kinney, Director of Business Development at QC Capital Solutions.

Business first service

Tracy also appreciated the way QC Capital Solutions put the needs of their business first, from providing the capital through receivables factoring that was needed to serve the client to small business consulting on financial matters.

“We were working practically around the clock,” said Tracy. “ It meant a lot to us that QC Capital Solutions came out to one of our clients’ locations to meet with us and answer all of our questions.”

For Celtic Hills Security, a business crisis led to a smart business decision. As a result, Celtic Hills Security and QC Capital Solutions continue to work together since that crisis in 2013.

“Working with QC Capital Solutions was the right decision for us,” said Tracy.