Sierra Crest Landscaping Line of Credit Success

Sierra Crest Landscaping secured a $475K line of credit to fuel seasonal growth and equipment expansion, resulting in 40% revenue increase and 12 new team members within 18 months.

Salvador Cortez, Owner and Lead Landscape Designer of Sierra Crest Landscaping a landscaping business in Northern California standing with a grounded, confident posture

Executive Summary

Sierra Crest Landscaping, a 16-year-old family business in Northern California, faced critical growth constraints despite consistent year-over-year revenue increases. The company secured a $475,000 business line of credit to address seasonal cash flow gaps and fund equipment purchases necessary for scaling operations. Within 18 months, the company achieved 40% revenue growth and expanded its service capacity significantly.

The Challenge

Seasonal revenue fluctuations created cash flow shortages during winter months, preventing investment in essential equipment like zero-turn mowers, excavators, and irrigation installation tools
Inability to take on new commercial contracts due to limited crew size; losing 8-12 bids monthly to larger competitors
Delayed payroll and vendor payments strained relationships and limited business credibility with suppliers seeking net-30 or net-60 terms

The Solution

Sierra Crest Landscaping chose a $475,000 revolving line of credit over a traditional term loan because it provided the flexibility needed for a seasonal business. Unlike fixed-term debt, the line of credit allowed the company to draw funds during slow winter months and repay during peak spring and summer seasons, aligning payments with actual cash generation.

The funds were deployed strategically across three areas: $185,000 for equipment purchases including two Bobcat skid steers, a mini excavator, and professional-grade irrigation installation equipment; $165,000 allocated to payroll and labor costs to hire and retain 12 full-time and seasonal crew members; and $125,000 held as working capital reserves to cover vendor payments, materials, and unexpected seasonal gaps. This capital investment enabled the company to bid on larger commercial projects and fulfill existing client demand that had previously gone unfulfilled.

Salvador Cortez, Owner and Lead Landscape Designer
"The line of credit gave us the flexibility to invest in equipment and hire quality crew members exactly when we needed them. We went from turning down jobs to having our best season ever."

The Outcome

Revenue increased 40% year-over-year, growing from $680,000 (2022) to $952,000 (2023), with projections reaching $1.2 million in 2024
Successfully hired and retained 12 additional crew members, expanding from 8 to 20 employees and reducing project completion timelines by 35%
Equipment utilization improved cash flow predictability; the company won 28 new commercial contracts in the first year, increasing their commercial revenue mix from 15% to 38% of total business

Conclusion

The $475,000 line of credit transformed Sierra Crest Landscaping from a capacity-constrained operator into a growth-stage business capable of competing with larger regional competitors. By providing strategic capital at the right time, the credit facility eliminated the constraints that had limited the company's potential for five years.

Looking Forward

Sierra Crest Landscaping plans to draw an additional $150,000 against the available line in 2024 to expand into landscape maintenance contracts and invest in fleet vehicles for crew transportation. The company is exploring acquisition opportunities for smaller local landscaping operations to further consolidate market share in the Sacramento metro area and surrounding regions.