Structuring a $4.5MM Purchase Order Financing to Generate $10MM in Revenue for a High-Growth IaaS Company

Marion Street Capital (MSC) recently assisted an Infrastructure-as-a-Service (IaaS) company in overcoming a critical working capital challenge by structuring a $4.5 million purchase order (PO) financing solution. This PO financing allowed the company to fulfill major orders with a global electronics distributor, unlocking $10 million in revenue.

The Most Pressing Challenge

Despite strong demand, the IaaS company faced a major financial hurdle: limited upfront capital to fulfill large customer orders. The IaaS business model requires significant working capital, making it difficult for startups or early-stage companies to access traditional financing solutions. To capitalize on two large POs, the company needed a fast and effective purchase order financing strategy to deliver on its purchase orders and generate $10 million in revenue.

How Marion Street Capital Solved the Most Pressing Challenge

Marion Street Capital leveraged its FinOps consulting expertise to structure an optimal purchase order financing solution. By engaging the right financial partners and executing a strategic deal structure, MSC provided the client with the working capital needed to fulfill its orders and scale operations.

MSC identified and engaged financing partners specializing in PO financing for high-growth technology businesses. The team developed financial models to outline potential return scenarios and investment outcomes, ensuring the financing terms aligned with the company’s growth trajectory.

FinOps

Transaction Structuring & Due Diligence

To streamline due diligence, MSC built a comprehensive data room, giving lenders confidence in the company’s ability to execute the orders. The team ensured all financial, operational, and market data were readily available to potential financiers.

Deal Execution & Legal Advisory

MSC assisted in negotiations to optimize financing terms, securing favorable repayment structures. Additionally, the team advised on legal and financial documentation necessary for a seamless closing process, ensuring the transaction was completed efficiently.

Outcomes

  • $10MM in purchase orders executed

  • $4.5MM in PO financing delivered

  • Improved cash flow and scalability for future growth