Security Partners joins SFA
LANCASTER, Pa.--Security Partners has a new partner, Security First AlarmGroup. Patrick Egan, president of Security Partners, announced in late June that he has signed an agreement to solicit new dealers for SFA.
SFA is a new dealer financing program, announced at ISC West (see "Smith debuts" in May 2006 issue of Security Systems News) this year by industry veteran Tony Smith.
Security Partners, a UL-listed central station that currently has 65 dealers, will be the exclusive central station for SFA's accounts east of the Mississippi. In addition, Security Partners will monitor any dealers it recruits west of the Mississippi. SFA accounts west of the Mississippi acquired by other sources will be monitored by National Monitoring Center of Aliso Viejo, Calif.
"The bottom line is that SFA has a $750 million credit facility, and this program truly represents a paradigm shift in dealer programs," Egan said.
The shift here is that "this is the only program that is a consumer loan that puts the credit risk where it belongs, with the customer." Egan said he likes elements of the program, such as its "no dealer hold-back; no guarantee," which Smith touted at the ISC West announcement.
Egan noted that SFA has added a loan program "in which a dealer can sell accounts and has a redemption opportunity to buy accounts back," he said.
Egan predicts SFA will be successful because it is well designed and because programs for dealers who are looking for funding in the $1-to-$5 million range have "vanished."
"There's a huge vacuum in loan programs and shortage of capital created by changes in current dealer programs and an absence of lenders specifically" in that loan range, Egan said. "I don't expect overnight success, you have to work at everything. But I think there's a huge amount of pent-up demand."
Smith, meanwhile, called the partnership "a wonderful opportunity." Since SFA's introduction in April, "We've signed a number of new dealers, added a five-year financing program to our repertoire and are working very hard to expand the program here nationally," said Smith.