IN DEPTH: Finance Programs Introduced Aimed at Reducing Alarm Company Risk

LAFAYETTE, Calif. – Jim Fitzgibbon, chairman/CEO of holding company SFG of Lafayette, Calif., announces the partnering with Lancaster, Pa.-based Security Partners. This combination brings together the collective management of three industry veterans with unique and “dealer-friendly” finance programs, tailored to fit dealers’ growth capital needs, without the credit risk.

Richard Zizian, a director of SFG and CEO of San Clemente, Calif.-based Security First Acceptance Co. LLC (SFAC) says the new SFG Group has programs for every dealer in the residential market.

“We have programs for dealers that depend on a quality dealer program with competitive multiple, no charge back, no holdback and a 30-percent lifetime revenue share,” he says. “For dealers not interested in being in a dealer program or selling their accounts, SFAC offers a ‘No Risk’ growth capital finance program where the dealer can borrow against his contracts and redeem them at the end of the loan amortization period.”

SFAC’s No Risk program provides funds to alarm dealers who wish to borrow on their accounts and keep 100 percent of the ownership in the accounts. The program focuses on improving the dealer’s immediate and long-term financial position while encouraging dealer independence, and does not require exclusivity with participating dealers. The program also includes competitive advance multiples, earn-as-you-go profit participation and lifetime revenue sharing. According to Zizian, the SFG Group is unique due to the fact that it funds dealers with loan advances where they have no personal or company guarantees against the funds they are loaned. “I believe that makes us the first and only off-balance sheet lender in the industry,” he says.

Patrick Egan, president of Security Partners and SFG’s East Coast monitoring and marketing partner, says that with the new finance programs in place, the dealer will receive the capital to grow their business while continuing to use their own brand, yard signs and decals.

“Reliable and affordable financing alternatives are lifeblood to the independent alarm dealer in our very competitive environment,” Egan says. “We will either acquire or finance newly created alarm contracts without the dealer bearing the risk of recourse, charge backs or holdbacks. The alarm industry has been waiting a long time for this combination of financial service programs.”

The West Coast monitoring partner will be National Monitoring Center (NMC) of Aliso Viejo, Calif. Tony Smith, president of Pasadena, Calif.-based Security FirstAlarm Group Inc. (SFA) and another key player in the new dealer program, notes that the two key components of the SFG programs are the Insured Customer Service Warranty and the Transfer America move-anywhere certificate.

The warranty is insured by General Fidelity, which pays the dealer their normal service rate, up to $100 per service call plus $150 for parts. The Transfer America certificate, delivered to the customer at the time of installation, entitles the customer to redeem it for up to $750 to pay off any existing alarm contract balance and provides the customer a no-charge system at his or her new location.

Additionally, the dealer programs can offer all participants up to $15,000 per contract in financing on home electronics and automation. According to Zizian, this includes state-of-the-art items such as plasmas, home theaters, structure wiring, central vac, security cameras, sound and lighting.

He notes that dealers are able to participate in one or all three of the SFG programs at the same time, depending on their financial needs. “Our mission is to be a full-service financial services organization to every dealer in the residential market space,” he says.

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About the Author


Scott Goldfine is the marketing director for Elite Interactive Solutions. He is the former editor-in-chief and associate publisher of Security Sales & Integration. He can be reached at [email protected].

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