At the height of the COVID-19 pandemic, homeowners had an urgent need to feel safe at home, which skyrocketed demand for Kangaroo’s security systems. The company felt a crunch trying to meet its working capital requirements while keeping up with the influx of orders and contending with disruptions to the global supply chain. Prior to this, it was easy for Kangaroo to ship their products from their manufacturers in China to the US, but the pandemic brought difficulties shipping their goods internationally to fulfill orders.
In addition to seeing increased demand, the company was expanding its omnichannel strategy and wanted to make sure they found efficient ways to receive cash in advance for their working capital needs.
“Our focus on making home security affordable for everyone requires that we find efficiencies and maintain financial flexibility across our entire business” - Tal Rubin, Controller.
“Settle solves a lot of our cash flow needs which helps us with our supply chain, everything from production to delivering a white glove service to our customers. Settle gives us the option to extend to more than the Net30 day terms we already have on invoices, which is helpful for large expenses. The pandemic changed how a lot of businesses thought about finances. With the help of Settle, it was very easy to make sure our products got from our manufacturer to the US.”
Paying deposits upfront makes it challenging to pay for increasingly large purchase orders to meet growing demand. “This is where Settle shines with the Split Payment feature,” says Tal. With Settle, Kangaroo can get flexible payment terms not only on their deposit payments, but also the larger balances down the line. “In addition to this, Settle gives us the option to extend to more than the 30 day terms on any invoice, like a large advertising expense.”
“In a way, Settle is like oxygen for us.” - Tal
The post-pandemic outlook for Kangaroo is bright, as the supply chain normalizes and retailers are beginning to place larger wholesale orders.
“One of the biggest benefits of working with Settle is that it allows our team to do what they do best and that is to continue to grow our business. The product has also allowed us to prioritize both profitability and maintaining a healthy burn-rate.”