Infuse Capital While Protecting Equity Using the Right Dealer Programs
Many dealer programs are available to security dealers, including account purchasing programs that can help infuse capital into the business. Flexible new options allow dealers to gain capital without sacrificing long-term equity.
As 2013 begins, new options for account purchasing via dealer programs can help companies meet financial and operational challenges in the industry. An option that could see a lot of activity in 2013 is the ability to get funding for new accounts without actually selling the contracts — or to sell accounts based on need, rather than selling 100 percent of one’s customer accounts and leaving no equity or recurring monthly revenue (RMR) in the business. Capital extracted from the value of accounts can be used to grow or sustain business, while still leaving balance between holding, financing and selling accounts to ensure maximum stability in the business.
“I expect the 2013 terrain to be similar to 2012, but with more clarity following the election, greater activity, and clear knowledge of what the customer wants in terms of product,” says Amy Kothari, president and CEO of Alarm Capital Alliance, Media, Pa. “The consumer demand is there for the products that the dealers are offering, but the credit markets are still not an easy or viable option for the smaller, local dealers. So dealer programs continue to thrive.