Sierra Peak Tech Solutions Line of Credit

Sierra Peak Tech Solutions secured $450K in financing to scale operations and accelerate product development, achieving 156% revenue growth within 18 months.

Gregory Xiong, Chief Executive Officer of Sierra Peak Tech Solutions a technology business in Northern California standing comfortably

Executive Summary

Sierra Peak Tech Solutions, a 12-person software development firm in Mountain View, required $450,000 in working capital to capitalize on rapid market demand for their cloud analytics platform. The company successfully deployed these funds to expand engineering capacity, enhance product features, and establish new market partnerships. The strategic financing enabled the company to scale revenue from $1.2M to $3.07M annually while maintaining founder control and ownership.

The Challenge

Limited working capital restricted the company's ability to hire specialized engineers and product managers needed to meet growing customer demand
Existing customers required custom integrations and premium support services that stretched internal resources beyond capacity
Competitive pressure from larger SaaS competitors required accelerated product development and feature releases to maintain market position

The Solution

Sierra Peak Tech Solutions selected a business line of credit over traditional term financing because it provided flexibility to draw funds as operational needs evolved, without paying interest on unused capital. The structure allowed the company to maintain ownership and control while accessing capital at competitive rates tied to their prime lending index plus a reasonable margin.

The company deployed the $450,000 strategically across four key initiatives: $180,000 for talent acquisition (3 senior engineers and 1 product manager), $130,000 for expanded cloud infrastructure and third-party development tools, $85,000 for targeted sales and marketing campaigns in new verticals, and $55,000 for working capital reserves to support accelerated growth. Within the first year, the company had drawn $380,000 of the available credit and established a track record of consistent repayment, demonstrating the viability of their growth model.

Gregory Xiong, Chief Executive Officer
"The line of credit gave us the runway to hire top engineering talent and invest in R&D without diluting our equity. We went from surviving to thriving."

The Outcome

Revenue increased from $1.2M to $3.07M annually, representing 156% growth over 18 months
Customer base expanded from 8 enterprise clients to 24, with average contract value increasing from $125K to $185K
Engineering capacity doubled from 6 to 12 full-time engineers, enabling the launch of 3 major product features and 2 vertical-specific solutions
Debt service ratio remained healthy at 2.8:1, with the company reducing outstanding balance to $220,000 by month 20

Conclusion

The $450,000 line of credit proved instrumental in transforming Sierra Peak Tech Solutions from a resource-constrained consultancy into a scalable SaaS platform company. By providing flexible, founder-friendly capital without equity dilution, the financing structure aligned the lender's success with the company's long-term vision of sustainable, profitable growth.

Looking Forward

Sierra Peak Tech Solutions projects reaching $5.5M in annual revenue by year-end, driven by the new product capabilities and expanded sales team financed through this credit facility. The company is exploring refinancing options and considering a Series A venture round to fund their aggressive 2026 expansion into European markets and adjacent verticals.