Desert Haul Express Line of Credit Success

Arizona trucking company secures $375K line of credit to expand fleet and improve cash flow, achieving 40% revenue growth within 18 months.

Keith Yarborough, Fleet Operations Manager of Desert Haul Express a trucking business in Arizona standing with a steady, professional presence

Executive Summary

Desert Haul Express, a Phoenix-based trucking company, faced significant growth constraints due to limited working capital and aging fleet equipment. By securing a $375,000 business line of credit, the company strategically invested in new trucks and operational improvements, enabling them to capture high-value contracts and expand their service territory across Arizona and New Mexico.

The Challenge

Insufficient working capital to purchase new trucks while maintaining operating expenses during seasonal business fluctuations
Aging fleet equipment causing increased maintenance costs and limiting ability to bid on premium freight contracts
Cash flow gaps between invoicing customers and receiving payment, averaging 45-60 days, creating operational bottlenecks
Limited access to traditional financing due to asset-heavy business model and variable seasonal revenue streams

The Solution

Desert Haul Express selected a flexible business line of credit over traditional term loans because it provided on-demand capital without forcing them to borrow the full amount upfront. This structure aligned perfectly with their seasonal business cycles and allowed them to access funds only when needed for specific growth initiatives.

The company deployed the $375,000 credit facility strategically across three key areas: $185,000 for the purchase of two late-model Volvo VNL tractors and accompanying trailers; $125,000 allocated to bridge working capital gaps and accelerate payroll during peak seasons; and $65,000 reserved for upgrading GPS/telematics systems, fuel management software, and driver communication tools that improved operational efficiency by 18%.

Keith Yarborough, Fleet Operations Manager
"The $375K line of credit was transformational for our business. We could finally purchase new equipment without waiting months between jobs, which directly increased our capacity to take on larger contracts."

The Outcome

Expanded active fleet from 28 to 34 trucks within 12 months, capturing an additional $2.8M in annual contract capacity
Reduced average payment collection period from 52 days to 31 days through improved cash management and strategic use of credit line for bridge financing
Achieved 40% year-over-year revenue growth, reaching $8.6M in annual revenue by month 18, with improved profit margins of 12.5%

Conclusion

The line of credit proved instrumental in breaking Desert Haul Express out of a cash flow constraint cycle that had limited growth for years. By providing flexible access to capital, the company could invest in assets and operations that directly generated new revenue streams and improved service delivery.

Looking Forward

Desert Haul Express is now in advanced negotiations with three major regional logistics companies for dedicated contract freight, which would require adding 6-8 additional trucks to their fleet by 2026. Management plans to leverage their strong credit history and the existing line of credit to support this next phase of expansion while exploring equipment financing options for the additional vehicles.