Sierra Ridge Construction Equipment Financing Success

Northern California construction firm secured $325K equipment financing to expand fleet capacity, increasing project capacity by 40% and revenue by $580K annually.

Oliver Kensington, Operations Director of Sierra Ridge Construction Services a construction business in Northern California standing with an open, professional stance

Executive Summary

Sierra Ridge Construction Services successfully obtained $325,000 in equipment financing to modernize and expand their heavy equipment fleet. The funding enabled the company to pursue larger commercial and infrastructure contracts throughout Northern California while maintaining operational flexibility. This strategic investment positioned the company for sustainable growth in a competitive regional market.

The Challenge

Equipment fleet was aging and inadequate for growing project demand, limiting bid capacity on larger contracts
High equipment rental costs ($8,500-12,000 monthly) were eating into profit margins and reducing competitiveness
Company had maxed out traditional bank credit lines and needed alternative financing for capital equipment

The Solution

Sierra Ridge Construction selected equipment financing as the optimal capital solution because it preserved working capital while allowing equipment ownership and tax depreciation benefits. The structured loan terms aligned perfectly with their cash flow cycles from multi-month construction contracts. Funds were deployed strategically: $165,000 for a new Caterpillar D6T crawler dozer, $95,000 for a John Deere 644K wheel loader, and $65,000 for an Atlas Copco air compressor system and support equipment.

Oliver Kensington, Operations Director
"The equipment financing allowed us to bid on larger projects without overextending our existing fleet. We've doubled our contract pipeline and improved crew efficiency significantly."

The Outcome

Fleet utilization increased by 40%, reducing idle equipment time and improving asset ROI from 18% to 32%
Monthly rental expenses decreased by $11,000, improving EBITDA margins by 6.2 percentage points
Contract revenue grew from $2.1M to $2.68M annually, with ability to bid on $500K+ infrastructure projects

Conclusion

The equipment financing proved transformational for Sierra Ridge Construction, converting fixed rental expenses into owned assets that generate long-term value. The company now operates with significantly greater operational flexibility and competitive positioning in the Northern California construction market.

Looking Forward

Sierra Ridge is planning a second-phase equipment financing round in 2025 to add specialized excavation and material handling equipment valued at $280,000. Management projects revenue growth to $3.5M by 2026 with expanded service offerings in both public and private sector infrastructure projects.