Alarm Financial Services

What Alarm Financial Services does

Alarm Financial Services, Inc. (AFS) is a privately held specialty finance company founded in 1987 and headquartered in San Rafael, California. AFS provides funding programs and advisory services to operating alarm dealers across the United States — small and mid-sized security, fire alarm, and personal emergency response (PERS) companies. It is the oldest dedicated funding source for U.S. alarm dealers and is led by a team of seasoned alarm-industry veterans, including Jim Wooster, Sr., who was inducted into the Security Sales & Integration Hall of Fame in 2023.

AFS's core offerings are term loans and revolving lines of credit collateralized by subscriber recurring monthly revenue (RMR) accounts, typically ranging from $150,000 to $1.5 million (up to $2 million for acquisitions) over terms of 36–60 months, at Prime + 6% interest with a 5% program fee. Complementing lending, AFS purchases alarm monitoring accounts (Sale of Accounts), offers a 50/50 Hybrid Financing structure that mixes loan proceeds with retained account ownership, and since 2023 has provided acquisition advisory services — including Pre-Sale Due Diligence for sellers and target identification, negotiation, and due-diligence support for buyers. The company operates as a licensed California lender (License #6053798) and maintains a credit facility with CIBC Bank USA.

AFS distributes its services through a sales-led model: direct outreach by phone and email, an online pre-qualification form, on-site meetings at industry events such as ISC West and ESX, and joint webinars with specialized partners including Kirschenbaum & Kirschenbaum, The Edmonds Group, Reitman Consulting Group, and Davis Group. Revenue is generated from loan interest, program fees, advisory fees, and account purchase/resale margins.

Name

Alarm Financial Services

Legal name

Alarm Financial Services, Inc.

Website

https://alarmfunding.com

Company type

Private

Founded year

1987

Operating status

Operating

Headcount range

1–10 employees

Short description

Alarm Financial Services is a privately held specialty lender and M&A advisor for U.S. alarm dealers, providing RMR-collateralized loans ($150K–$2M), account purchases, and acquisition advisory services since 1987.

Ownership category

akta.pro rank

Product category

Specialty Commercial Lending for Alarm Dealers

NAICS

Finance and Insurance (52), Other Financial Vehicles (52599)

SIC

Loan Brokers (6163), Finance Services (6199)

akta.pro primary industry

Debt & Capital Advisory (Debt Raising, Refinancing, Private Credit) (BPAHAOAD)

akta.pro secondary industries

Distressed M&A & Special Situations Advisory (BPAHAOAH), Debt Restructuring & Workout Advisory (Consumer & SME) (FSAEAFAH)

Keywords

• Alarm dealer financing
• RMR-backed lending
• Security industry funding
• Acquisition financing services
• Alarm company loans

Headquarters

HQ city

San Rafael

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales

Revenue model

1. Loan Interest and Program Fees: AFS generates revenue through interest charges on loans (Prime + 6%) and program fees (5% of loan amount). Loans range from $150,000 to $1,500,000 for terms of 36 to 60 months, using subscriber alarm monitoring accounts as collateral.
2. Acquisition Services: Fee-based advisory and brokerage services for alarm companies seeking to acquire other dealers or sell their businesses.
3. Sale of Accounts: Purchase and sale of alarm monitoring accounts, providing liquidity to dealers wanting to exit or reduce their portfolios.
4. 50/50 Hybrid Financing: Combined loan and purchase financing structure where AFS retains 50% of accounts, generating revenue through both interest and ownership stakes.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels6 records

Core offering

Alarm Financial Services provides specialized financing programs and advisory services for operating alarm dealers throughout the United States. Core offerings include term loans and revolving lines of credit ($150,000 to $1.5 million) collateralized by Recurring Monthly Revenue (RMR) monitoring accounts, sale of accounts for dealer exit or partial liquidity, a 50/50 hybrid loan/purchase financing program, and acquisition advisory services including pre-sale due diligence for sellers and buyer-side deal support. Loan terms range up to 60 months with advance rates up to 18x qualified RMR, priced at Prime + 6% interest plus a 5% program fee.

Product overview

Alarm Financial Services offers a unified suite of financing programs and advisory services for operating alarm dealers. The core products include Loans (term loans and revolving lines of credit), Sale of Accounts, and 50/50 Hybrid Financing. These are complemented by service offerings: Acquisition Services for buyers seeking to acquire alarm companies, Pre-Sale Due Diligence Service for sellers preparing to exit, and Acquisition Advisory Services for both buyers and sellers. The company also provides Partner Financing Programs including factoring and leasing. The integrated portfolio enables dealers to grow through acquisitions, consolidate debt, buy out partners, or transition through sales.

Differentiator

Problem solved

Functional benefit

Products and services

• Loans (Term Loans and Revolving Lines of Credit) Term loans and revolving lines of credit ranging from $150,000 to $1,500,000 (with broader programs up to $2 million) collateralized by Recurring Monthly Revenue (RMR) subscriber alarm monitoring accounts and contracts, amortization up to 60 months, advance rates up to 18x qualified RMR, priced at Prime + 6% interest with a 5% program fee, for operating small and medium-sized security, fire alarm, and PERS dealers in the United States.
• Sale of Accounts Service that enables alarm dealers to sell their entire business or a portion of their monitoring accounts as an exit strategy or partial liquidity event, while retaining direct customer relationships and company identity, generating revenue through transaction fees for AFS.
• 50/50 Hybrid Financing Hybrid loan/purchase financing program where AFS provides financing to the dealer and retains a 50% ownership stake in the underlying monitoring accounts, generating revenue through both interest and ownership participation.
• Acquisition Services Comprehensive buyer-side M&A services for alarm dealers, including identifying seller targets, negotiating deals, conducting due diligence, and providing acquisition financing to close purchases of other alarm companies or blocks of accounts.
• Pre-Sale Due Diligence Service Pre-sale due diligence service for alarm dealer owners preparing to sell, designed to identify and remediate deficiencies such as slow-paying accounts, monitoring contract issues, attrition, and technology obsolescence prior to a buyer's review, in order to maximize business valuation and sale proceeds.
• Acquisition Advisory Services Advisory services for security or fire alarm dealers considering acquisitions, available to both sellers and buyers, covering deal structuring, valuation guidance, due diligence coordination, and transaction execution support.
• Partner Financing Programs Additional financing options offered through AFS's partner network, including outright purchase of monitoring accounts, factoring of receivables, leasing, and consumer financing programs for alarm dealer customers.

Quantifiable outcome

• Up to 18x Qualified Recurring Monthly Revenue (RMR) advance rate on loans
• +1 more outcomes

Named customers8 records

Segments4 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Eight partnerships are on record, tiered core and minor.

• Acquisition & Funding ServicescoreStrategic or Co-development PartnerAcquisition & Funding Services specializes in mergers, acquisitions and financing in the security alarm, fire and integration industry. Website: www.afssmartfunding.com
• Davis Group Mergers & AcquisitionscoreStrategic or Co-development PartnerDavis Group provides customized consulting, planning and facilitation services to alarm companies, consulting in finance, law, strategic planning, technology, innovation and marketing. Website: www.graybeardsrus.com
• DMJ SystemsminorOthersDMJ Systems provides high quality printed products exclusively to alarm companies. Website: www.dmjsystems.com
• Kirschenbaum and KirschenbaumcoreImplementation/ SI/ Consulting PartnerAttorneys to the alarm industry, protecting families and businesses for over 45 years. Provides legal services including Alarm Exchange and Alarm and Security Contracts. Website: www.kirschenbaumesq.com
• Reitman Consulting GroupcoreStrategic or Co-development PartnerThe Security Industry's Leading Provider of Transactional & Advisory Services. Website: www.reitman.us
• The Edmonds GroupcoreStrategic or Co-development PartnerA specialized investment bank focused on recurring revenue industries with particular emphasis on the security alarm industry. Website: www.theedmondsgroup.com
• CA Alarm AssociationminorOthersCalifornia Alarm Association - AFS is a proud member and Licensed CA Lender.
• Electronic Security Association (ESA)minorOthersElectronic Security Association - AFS is a proud member of this industry association.

Scale indicators4 records

Recent moves5 records

Expansion highlights4 records

Direct peers

• BlueVine: BlueVine provides SMB financing including invoice factoring and lines of credit. Comparable business model of receivables/cash-flow-backed specialty lending to small businesses, albeit in a broader vertical than alarm dealers.
• OnDeck: OnDeck is an established SMB working-capital lender underwriting against business performance and cash flow. Comparable to AFS as a long-tenured specialty small-business lender, though serving broader SMB verticals.
• Fundbox: Fundbox provides SMB lines of credit and short-term working capital underwritten against cash-flow signals. Comparable to AFS in deploying a revenue-based specialty lending model, though addressing broader SMB verticals rather than a focused alarm industry niche.

Broad incumbents

• CAN Capital: CAN Capital is a long-established small-business capital provider offering working capital and term loans to SMBs. Comparable as a tenured specialty SMB lender, though spread across many verticals rather than focused on the alarm industry.

Others

• Acquisition & Funding Services: Acquisition & Funding Services specializes in M&A and financing in the security alarm, fire, and integration industry. Closely overlapping customer base and service offering to AFS, with a noted partnership relationship that generates referrals.
• Kirschenbaum and Kirschenbaum: Kirschenbaum & Kirschenbaum are attorneys to the alarm industry and operate the Alarm Exchange marketplace. A long-standing complementary ecosystem participant serving the same alarm-dealer customer base, with a noted AFS partnership.
• Davis Group Mergers & Acquisitions: Davis Group provides customized consulting, planning and facilitation services to alarm companies. Direct overlap in alarm-dealer customer base and complementary M&A advisory offering, with a noted AFS partnership.
• Reitman Consulting Group: Reitman Consulting Group provides transactional and advisory services to the security industry. Direct overlap in customer base and complementary service offering to AFS's buyer/seller advisory services, with a noted AFS partnership.
• The Edmonds Group: The Edmonds Group is a specialized investment bank focused on recurring-revenue industries with particular emphasis on the security alarm industry. Direct overlap in customer base (alarm dealers) with complementary advisory services and a noted AFS partnership.

Emerging players

• Parafin: Parafin provides embedded revenue-based financing to small businesses through software platforms. Comparable in deploying revenue-based underwriting, but as a newer fintech using embedded distribution rather than AFS's direct, relationship-led dealership outreach.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/Alarm-Financial-Services-Inc-105172487988963
• LinkedInlinkedin.com/company/alarm-financial-services-inc

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Alarm Financial Services