SoCal Construction Scales with Strategic Credit

Sierra Xavier Construction used a $500K line of credit to expand operations, equipment, and workforce, achieving 45% revenue growth and securing major commercial contracts.

Sophia Ximenez, Chief Operating Officer and Co-Founder of Sierra Xavier Construction a construction business in Southern California standing with quiet confidence

Executive Summary

Sierra Xavier Construction, a growing general contracting firm in Orange County, faced cash flow constraints that limited their ability to pursue larger commercial projects and maintain consistent workforce capacity. By securing a $500,000 business line of credit, the company unlocked significant growth opportunities and strengthened operational resilience.

The Challenge

Limited working capital prevented bidding on commercial projects exceeding $2M, leaving significant revenue opportunities on the table
Seasonal project fluctuations created cash gaps between project completion and payment receipt, delaying subcontractor and employee payments
Lack of capital reserves meant turning down equipment investments and unable to maintain a larger, more skilled workforce during peak seasons

The Solution

Sierra Xavier Construction pursued a $500,000 business line of credit to address working capital constraints and position themselves for mid-market commercial growth. The flexibility of a revolving line of credit aligned perfectly with their seasonal business model, allowing them to draw funds as needed during project gaps and repay quickly upon project completion.

The company strategically deployed the credit across three key areas: approximately $200,000 toward equipment purchases (scaffolding, concrete pumps, and power tools), $180,000 to maintain payroll and subcontractor payments during cash conversion cycles, and $120,000 reserved for working capital on larger bids. This approach allowed Sierra Xavier to bid competitively on commercial contracts worth $2.5M to $4M while maintaining crew stability and strengthening relationships with critical subcontractors and suppliers.

Sophia Ximenez, Chief Operating Officer and Co-Founder
"This line of credit was the catalyst we needed. We could bid on larger projects confidently and pay our crews on time, which transformed how clients and subcontractors viewed our company."

The Outcome

Revenue increased 45% year-over-year, growing from $4.2M to $6.1M in annual contract value
Successfully completed 8 new commercial projects, including a $3.2M office renovation and a $2.8M retail complex construction
Crew size expanded from 22 to 35 full-time employees, with improved staff retention and reduced turnover by 60%
Line of credit utilization averaged 55%, demonstrating disciplined financial management and maintaining $225K in available capacity

Conclusion

The strategic deployment of the $500,000 line of credit fundamentally transformed Sierra Xavier Construction's competitive position in the Southern California market. Within 18 months, the company evolved from a regional player limited to mid-sized residential and small commercial projects into a credible bidder for substantial commercial contracts.

Looking Forward

Sierra Xavier is exploring opportunities to refinance the line into a larger facility to support their $8M revenue goal by 2025 and potential expansion into San Diego County. With demonstrated growth and operational discipline, the company is positioned to become one of Orange County's leading mid-market construction firms within the next three years.