When publicly held security dealer Monitronics filed for bankruptcy in May 2019, then came out of it several months later, it had a ripple effect on the entire security industry.
Several sources close to the issue told SDM that security industry lender Pacific Western Bank, which acquired CapitalSource several years ago, has stopped making new loans to the security industry and has told borrowers that their credit lines will not be renewed when they expire. In addition, the sources said another key security industry lender — Bank of America — has become more restrictive about loans to the industry and is catering to dealers that focus on commercial accounts. Pacific Western Bank did not respond to an inquiry from SDM and a spokesperson for Bank of America declined to comment.