Security Partners helps dealers with funding
LANCASTER, Pa.—Security Partners, a wholesale central station based here, announced a new funding program for its dealers.
Mike Bodnar, president of Security Partners, told Security Systems News that the new program is a “vehicle that will allow our dealers to grow their RMR, build their business, and … maintain ownership of their accounts for the long term.”
“We are able to fund 60-month subscriber agreements. There is an ability for continued funding on the account with a line of credit that we’ll establish for the dealer,” Bodnar said. “All throughout, the dealer will be servicing their customer for the short term and the long term, because it will remain their customer at the end of their term.”
Security Partners is working with Belmont Finance to provide the funding to its dealers. Rich Kosiec, CFO for Belmont Finance, said the organization should have $10- to $20 million available for the first year, and will have more funds available as needed.
Through the program, customers receive a revolving line of credit while paying a standard monthly rate for their security system. Dealers receive upfront cash for the term of the agreement. Kosiec said that dealers would receive a 26x multiple for a 36-month agreement, depending on the consumer’s credit. Dealers retain ownership of the account after 36 months.
“To the consumer, it doesn’t look any different,” Kosiec said. In fact, customers may benefit from using the program because it can improve their credit score, he said.
The company introduced the funding platform and the web portal in early June, Bodnar said. Security Partners began developing the program four months ago.
All of Security Partners’ dealers have access to the new web portal, Bodnar said, but dealers can use it in conjunction with the funding program to “check a consumer’s eligibility/gain credit approval for the sales, installation and future servicing of a security system; create an electronic agreement for that same approved sale that can be quickly completed and endorsed with an e-signature from the subscriber.”
Bodnar said he expects this will bring new dealers into Security Partners. He estimated that “7- to 10 percent of our [current] dealer base will, no doubt, have interest in the program.”
This is the first time Belmont Finance is getting into the security industry, Kosiec said. The two companies met and started discussions at ISC West 2016.