Rio Grande Valley Construction Working Capital Growth

Rio Grande Valley Construction secured $325,000 in working capital financing to expand operations and complete major commercial projects, achieving 40% revenue growth within 18 months.

Zyanya Lozano, Chief Operating Officer & Co-Founder of Rio Grande Valley Construction LLC a construction business in South Texas standing with quiet confidence

Executive Summary

Rio Grande Valley Construction secured a $325,000 working capital loan to address rapid business growth and increased project demand in South Texas. The company leveraged these funds to expand payroll, purchase equipment, and maintain healthy cash flow during extended project timelines. This strategic financing enabled the company to pursue larger commercial contracts previously out of reach.

The Challenge

Rapid business growth outpaced existing cash reserves, creating strain during multi-month project cycles with extended payment terms
Equipment and inventory investments needed upfront to bid on and secure larger commercial contracts worth $2M+
Labor shortages required competitive wage packages and early recruitment costs before project revenue materialization

The Solution

Rio Grande Valley Construction chose a working capital loan because traditional bank financing required extensive collateral and lengthy approval timelines. The flexible structure allowed the company to address immediate operational needs while maintaining equity in the business. The $325,000 was strategically deployed across three key areas: $145,000 to expand the skilled labor force with competitive hiring and retention bonuses; $120,000 for equipment purchases including excavators, concrete cutters, and finishing tools; and $60,000 to build inventory reserves and establish material supplier relationships.

The loan's favorable terms and rapid funding—closing in just 14 days—enabled Rio Grande Valley Construction to capitalize on a surge in commercial development permits throughout the McAllen and Pharr region. By securing this capital before the busy construction season, the company positioned itself to bid confidently on three major commercial projects totaling $5.2M, ultimately winning two of them. The working capital buffer also improved vendor relationships by enabling early payment discounts, reducing material costs by approximately 8%.

Zyanya Lozano, Chief Operating Officer & Co-Founder
"This working capital loan was transformational for us. It allowed us to take on larger projects without compromising cash flow, and we've grown our team and capabilities significantly."

The Outcome

Revenue growth of 40% year-over-year, increasing from $3.8M to $5.3M in the first 12 months following loan disbursement
Project pipeline expanded from 4-5 concurrent projects to 9-12 active contracts, with an average project value increasing from $800K to $1.3M
Successfully hired and retained 18 additional skilled workers, growing the workforce from 35 to 53 full-time employees with industry-competitive wages

Conclusion

The $325,000 working capital loan proved to be a critical catalyst for Rio Grande Valley Construction's expansion into larger commercial projects. By addressing cash flow constraints and enabling strategic investments in labor and equipment, the company transformed its operational capacity and market position within the highly competitive South Texas construction landscape.

Looking Forward

The company is now positioned to pursue larger regional contracts and establish itself as a premier commercial construction partner throughout the Rio Grande Valley. Management plans to reinvest profits into technology infrastructure and additional equipment, with plans to achieve $8M in annual revenue within 24 months while maintaining the quality and safety standards that define the brand.