DallasTech Solutions Working Capital Growth

DallasTech Solutions secured a $475,000 working capital loan to accelerate inventory expansion and hiring, achieving 42% revenue growth within 18 months.

Derek Novak, Chief Executive Officer of DallasTech Solutions a technology business in North Texas standing with quiet confidence

Executive Summary

DallasTech Solutions, a rapidly growing software and IT infrastructure company in Plano, Texas, secured a $475,000 working capital loan to support aggressive expansion. The company faced a critical cash flow gap between signing enterprise contracts and project delivery, limiting their ability to hire and maintain adequate inventory.

The Challenge

Cash flow constraints preventing timely inventory purchases and equipment procurement for client deployments
Inability to hire qualified software developers and IT specialists despite having secured contracts worth $1.2M
Delayed project delivery timelines due to understaffing, risking client relationships and contract penalties

The Solution

DallasTech Solutions required immediate working capital to bridge the gap between contract acquisition and revenue realization. The $475,000 working capital loan provided the necessary liquidity to invest in growth without disrupting operations or taking on unfavorable equity partners.

The company deployed funds strategically across three initiatives: $200,000 allocated to hiring 8 additional software engineers and support staff; $175,000 directed toward cloud infrastructure, servers, and security equipment inventory; and $100,000 reserved for operational expenses and working capital reserves. This balanced approach enabled the company to fulfill existing contracts on schedule while positioning itself for future enterprise client acquisition.

Derek Novak, Chief Executive Officer
"The working capital loan came at a critical moment. We had the contracts and the demand, but we needed capital to bridge operations. This funding transformed our ability to scale efficiently."

The Outcome

Revenue increased 42% year-over-year, growing from $2.8M to $3.97M within 18 months of loan deployment
Client retention rate improved to 94%, up from 87%, due to improved project delivery timelines and service quality
Successful onboarding of 8 new team members, reducing project delivery backlogs by 35% and enabling 6 new enterprise client contracts

Conclusion

The working capital loan proved instrumental in converting DallasTech Solutions' market opportunity into sustainable revenue growth. By maintaining operational flexibility and strategic hiring, the company transformed a cash flow constraint into a competitive advantage.

Looking Forward

DallasTech Solutions is now positioned for Series A funding discussions and plans to expand into adjacent markets across Texas and Oklahoma. The company projects 55% revenue growth for the following fiscal year and is evaluating additional locations in Dallas and Fort Worth to support geographic expansion.