KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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do you use leasing company to finance your sales
March 30, 2018
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do you use leasing company to finance your sales  
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Ken
     I use your contracts, read your daily emails and am active on 
The Alarm Exchange.  We are a commercial security integrator and often like to offer leasing of security equipment to our customers as an option as opposed to outright purchase. 
    My company does not do the actual leasing and will typically recommend Graybar Leasing for our customers.  If they are approved, we get paid from the leasing company for the total project and they bill the customer monthly for the purchase which helps conserve capitol.  We still invoice separately for the monitoring and services. 
    I was looking on your site for other competing leasing companies to see who has the most competitive plans and rates for our customers.  I do not see that you have any of these companies on 
The Alarm Exchange.  Can recommend to me any company that you are aware of that provides leasing (Dollar Buy Out) for security equipment so I can contact them and get some competitive information. 
    Protecting You,
name withheld
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Response
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    There are a bunch of financial options listed on 
The Alarm Exchange in the Financial Services Category.  Working with a finance company who will fund your sale and installation is one option, and actually a better option than some of the other popular arrangements dealers find themselves in.  In this model your subscriber can't afford the installation and you get a finance company to fund that installation.  The subscriber pays the finance company over time pursuant to a lease provided by the finance company.  This lease, often called a "hell or high water lease" requires the subscriber to pay the leasing company, no matter what.  Copy machines were sold this way - probably still are, and so is home improvement work.  It's not as common in the alarm industry because the sale and installation is not usually so high that the subscriber needs the financing.
    A better plan is to lease the system yourself using the Commercial [or Residential] All in One Lease.  Yes, you end up fronting the cost of the installation, but you get it back in your RMR.  If you can afford this model, it's the best.
    But I would like to comment on the worst.  Can anyone, even one ...., tell me that an arrangement where you sell off your accounts to the Dealer Program, get your money up front, and end up with nothing, works well?  Anyone happy with Monitronics?  ADT?  Any other program that ends up with your accounts?  Seems to me you end up being a sales person for these programs.  In fact, the only time I do hear from dealers regarding these programs is when the dealer wants to get out of the program or is being sued by the program so the program can recover some or all of the money it paid the dealer.  
    These programs spend lots of money promoting the program and signing up dealers.  Anyone have a positive experience?  Only those with more than 2 years experience with the program need respond since it probably takes at least that long to come to your senses.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com