It’s an old axiom, but it holds up well. Money follows the security industry because the security industry delivers results. And while many things haven’t changed about how security dealers get financing, a few new trends are starting to emerge.
In this month’s feature article, “Financial Services: What’s Changed, What Hasn’t,” author Joan Engebretson focuses on some financing facts that are well known to security dealers as well as some lesser known facts, such as that interest rates are expected to increase soon.
The article, which begins on page 52, also reveals some trends. One is that dealer programs may become a much more relied upon business model for dealers. Dealer programs offer a formalized means for the program operator to purchase monitoring contracts from security installing companies on a regular basis. The program operator pays the dealer a multiple of the RMR and in exchange, gets the RMR. Dealers may sell accounts on a regular basis or only once in a while.