The dealer financing market has been stable for many years. The changes that have occurred include new types of investors and new factors that potential lenders will consider in making loans to dealers.
Raising outside funding can give security dealers the boost they need to bring on new accounts, thereby generating escalating recurring monthly revenue. But because security industry economics are so different from many other industries, security dealers face a unique set of challenges as well as opportunities when they set out to raise funding. Some of these challenges and opportunities are the same ones that dealers have faced for many years; others are new.