Who's Minding your Premises? Security Meltdown Predicted by Ashley
By 20 March 2006 all contract security officers, supervisors, managers and directors will need a licence for each employee to continue their work legally. Home Office Minister, Paul Goggins confirmed earlier this month (12 Jan) that this Approved Contractor Scheme would be introduced and that the fine detail, including the fee structure, will be announced as soon as possible.
The upfront price of each licence under the approved contractor scheme was previously given as a £190 application fee, which includes the £28 cost of obtaining a disclosure from the Criminal Record Bureau. Then there is the cost of training. The British Security Industry Association (BSIA) has stated that the cost per officer will be in the region of £600 for just the first year of licensing and, depending upon current pay rates, wage increases of 10-15% could well be required. The contract guarding industry has no capacity to absorb these costs, so end-users should expect contract prices to rise substantially. Small business invoice finance specialists Ashley Commercial Finance has a number of security companies as customers for their invoice finance services.
Jonathan Cranston, managing director of Ashley said; “Whilst we recognise that the industry needs to be more regulated we also understand the difficulties faced by security companies. This is why we have put together a special package of services for security companies to help them meet their extra liabilities under the new regulations.”
The package advances funds over and above an agreed factoring facility to help with the fees for training security personnel. This option is much more flexible than an overdraft and manages credit control for the company through a challenging period.
Ian Robins, sales director of Ashley Commercial Finance commented; “Expect some security companies to go under as they try to raise prices, absorb the costs themselves or struggle to find work if they don’t comply. These costs amount to about 10% of turnover and cash flow will be critical, unless they ask self-employed guards to find the costs themselves.”
Phone Ashley Commercial Finance’s helpline on 0161 741 7412 for more information.
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Facts & Figures. Between 12-15% of existing personnel in the industry are predicted by the BSIA to fail the SIA’s training and skills criteria. Of the 125,000 employees estimated to be in the security market by the SIA, there are 68,000 Security Guards. So far 15,000 Licences have been granted, with 29,000 applications to process and 188 refusals. This means that so far, 22% licences are granted, 43% have applied; and 35% security guards are not yet ready to apply. Door supervisors legislation came in April 2005 and according to the SIA, currently only 50% of supervisors are licensed.
The security market includes guarding, door supervisors, Cash & Valuables in Transit, CCTV operators and close Protection. The fee of £190 is for a 3 year licence and requires 2 days of training, this includes Conflict Management, Communication skills, Fire reporting, Dealing with incidents, Understanding civil and criminal law, the Role of security officers and Customer care and social skills. It also includes a Criminal Record Bureau check on identity and any history of convictions.
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Ashley Commercial Finance is a truly independent invoice factoring company, with no ties to banks or other financial institutions. Ashley provides invoice finance for the smaller business (including start ups and turnarounds) across England and Wales. Ashley has offices in Manchester, London, Leeds and Bristol. The company has almost 200 clients with turnovers between £50,000 and £1.5 million. They range from printers to road haulage companies, recruitment agencies to taxi firms, recycling companies to IT organisations.
Ashley provides ongoing finance for a business at up to 90% of the value of a client’s sales ledger, which, coupled with professional credit control makes invoice finance an attractive option for a growing business and a smarter alternative to an overdraft. As the facility is based on a percentage of turnover, the funding available grows with the business. Ashley’s independence and lack of bureaucracy means that funding can be in place for new clients to draw down within 24 hours of receiving sales invoices and at the lowest minimum fee. Full Online Account Access enables clients to obtain account information 24 hours a day.
Unlike many other invoice finance companies, Ashley allows clients to choose which accounts they factor, thus avoiding paying unnecessary factoring fees.
In response to client demand, Ashley launched an asset finance facility in June 2005. This is available for anything from computers, telephone systems and office equipment, through to company vehicles, yellow plant and machinery.
There is a great step by step ‘Guide to Invoice Finance’, a guide to ‘Being Paid on Time’ and more information about the company at www.ashleyfinance.co.uk
Ashley Commercial Finance is a patron of the National Association of Commercial Finance Brokers (NACFB).
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