KDH Defense Systems is in the business of engineering and manufacturing high-tech body armor that soldiers and law enforcement agencies depend on in life-or-death situations. The products protect the wearers and do so with comfort and concealability while remaining ultra-lightweight. That is critically important, for example, on the battlefield where prior to advancements in technology and manufacturing, soldiers were carrying around 100 extra pounds of weight in armor and equipment. The body armor not only slowed them down but also left many with back and shoulder issues.
Given the nature of their business, most of KDH’s contracts are with government agencies. Four sizable contracts with the U.S. Army, all requiring start up at once, created a unique requirement for significant capital at a time when KDH was taking on large expenses—without the necessary income coming in – to expand its manufacturing facility to handle the new contracts.
“We were in need of a creative solution to ramp up substantial raw materials and move into the actual production process,” said Dave Herbener, who founded KDH in 2003. “Gibraltar Business Capital came up with a flexible and made-to-order financial plan in very short order.”
Gibraltar was able to structure a $10.8 million asset-based credit facility that looked to raw materials, works in progress, finished goods, and equipment for collateral. As is characteristic of the Gibraltar team, led by Michael Conrad, senior vice president and business development officer of the ABL originations team, the deal was put together quickly, thanks also to Gibraltar’s long history of doing business with other government contractors. That background gave Gibraltar deep understanding of how the contract process works including what’s involved, how the government orders and reviews contracts, and how it pays them.
Do you have a government contract that is clenching your financial flexibility? Gibraltar Business Capital has the means to open your lines of credit. Contact us today and we will connect you with a sales representative.
“We were in need of a creative solution to ramp up substantial raw materials and move into the actual production process. Gibraltar Business Capital came up with a flexible and made-to-order financial plan in very short order.”Dave Herbener, Founder, KDH Defense Systems