Security Companies Are Lenders. Do You Perform Credit Checks On Potential Customers?

Free Security System

In today's market subsidizing up front installation and equipment costs in exchange for 3 to 5 year service agreements is a reality. This is especially true for home and small business security. The direct cost to you of installing "Free Systems" is $500 to $1000 per system. If you install 20 security systems a month you are lending $10,000 to $20,000 a month and over a year that's $120,000 to $240,000!

Please share:

  1. Your credit policy if you have one (before and after the sale)?

  2. What credit score do you consider acceptable?

  3. What do you do if the prospect doesn't meet your credit requirements? Do you offer alternatives?
  4. Have you ever re-possessed equipment that wasn't paid for? How did that go?
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