Home security provider Scout Security Limited (ASX: SCT) has entered into an agreement to access working capital facility of up to $1 million.
The company said the funds will allow it to continue to pursue growth opportunities across its lines of business.
Scout Security co-founder and CEO, Dan Roberts, said that securing this facility allows the company to fund the working capital it needs to continually expand Scout Alarm deployments and grow monthly recurring revenue.
“As our existing white label business continues to expand and new opportunities arise, this facility gives us the flexibility to respond with additional resources to meet the demands of those programmes. ”
“The facility will support Scout’s operational expenditures and allow the company to pursue growth opportunities in the second half of the year. This will empower us to meet customer orders faster as we continue to aggressively grow the business in the USA and abroad.”
The key terms of the agreement will see Scout receive a first tranche of $500,000 upfront. Scout will be able to draw down on the second $500,000 tranche 150 days after the first tranche is drawn down.
The loan will be secured by a general security deed over the assets of Scout Security.