KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Customer using third party to finance installation and sale December 12, 2025 ************************* Customer using third party to finance installation and sale ************************* Ken, If we have a customer who signed an agreement with us under a specific corporate name for a particular site, but later decides to finance the project through a financing company using a different corporate name than the one on our agreement, would that create any conflict? Additionally, if we receive full payment upfront from the financing company, and the original company that signed our agreement continues to pay the RMR, is there any issue with this arrangement? Let me know if you need anything further. Respectfully, Roman *********************** Ken, We use all of your contracts and are a concierge client. Recently, a potential commercial customer accepted our proposal but wanted to finance the purchase. We enlisted the help of a third-party finance company in our industry. They’ve gone ahead and approved the project for financing based on the customer’s credit. We’ve never done a 3rd part finance deal before and am confused on how the Commercial All in One gets filled out. The finance company is going to pay us 50% upfront and 50% upon completion of the project. I started to fill out the purchase price and tax but got stumped when I got to the deposit and balance due. To further complicate matters there are also monthly service changes not included in the financing that the customer is paying directly to us, monitoring, repairs, and cloud services. To further complicate matters there are also monthly service changes not included in the financing that the customer is paying directly to us, monitoring, repairs, and cloud services. Is the commercial all in one the right contract? And how does the 3rd party financer fit into the contractual process? Thank you, Andy ***************************** Response **************************** First let's deal with the proper party. Entity A signs a contract and then tells you that Entity B is going to finance the sale and installation. Entity B needs to sign a contract if it's the one buying. If it's only the one paying then Entity A, who has already signed the contract, just needs to add Entity B to that contract as a third party guarantor. If Entity B is going to be the buyer then it has to sign a Commercial All in One for the sale and installation phase of the job. So you need to know who is buying the system and paying to put it in and that party needs to sign the contract. Whichever Entity is going to contract for the on-going after-install RMR services, that Entity has to sign a Commercial All in One. This is a bit complex - and mostly because I don't know what the finance company wants. You may be selling the equipment to the finance company who is then leasing it and reselling it to the customer; you might be selling to the customer and the finance company has agreed to pay you; unless I know what the finance company wants I dont know how to advise you. Most finance companies will want you to sell them the equipment and then they will lease it to the customer with a minimal or residual buy out. Finance company will be presenting papers to the customer - either sale with financing or a lease with dollar or residual buyout. Unless you are getting into low income deals where customers have to finance I'd stay away from it. Let the customer go borrow from wherever they want for financing. Also, be sure whoever you are dealing with has signed your K&K Contract. ***************************** STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ******************** Wondering how much your alarm company is worth? 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