Case Study: Tactical Sound Systems – Startup Solution

Need: Startup Solution

EXECUTIVE SUMMARY

This company started with a solution for a problem identified in the market. Emergency alert systems that are used to warn and instruct a community were not convenient to use. The existing process was cumbersome and time consuming and was not mobile enough. The company designed and built a system that is more mobile, efficient and diverse in it’s use. To process their first order, they were in need of a startup finance solution.

ABOUT THE COMPANY

HQ Location: Kentucky

In Business For: less than 2 years

Annual Revenues: $0, processing first order

Customer Base: Domestic, First Responders

CHALLENGES

> There was not enough existing cash to build and fill the first large order.

> Cash Flow issues prevented the company from accepting a large order since these units are purchased by government agencies, requiring 60 day terms.

SOLUTION

A financing tool was used that not only solved the cash flow issue, but also funded the materials needed to construct the units to fill the large orders. Orders were funded individually, as needed, starting with the first order.

The company was able to create forward momentum which allowed for advanced planning to accept and process the large orders and extended terms based on individual customer needs.

> This new company was able to establish a financial foundation that led to a more traditional Line of Credit which is currently handling their operating capital requirements.

Startup Solution to Filling the Financial Gaps with Leap KapitalThis solution was based on a large government contract and provided a hybrid working capital/cash flow fix to get the company moving forward.

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