Verde Landscapes Secures Growth Capital

Verde Landscapes used a $425,000 working capital loan to expand equipment and staffing, increasing revenue by 45% within 18 months.

Frank Valenzuela, Founder & Chief Operations Officer of Verde Landscapes LLC a landscaping business in Colorado standing comfortably

Executive Summary

Verde Landscapes, a Denver-based landscaping company with $1.2M in annual revenue, secured a $425,000 working capital loan to capitalize on growing market demand and operational constraints. The capital enabled strategic equipment purchases and workforce expansion, positioning the company for accelerated growth during peak seasons.

The Challenge

Seasonal cash flow limitations prevented the company from purchasing necessary equipment like new mowers, trucks, and irrigation systems during peak spring and summer demand
Inability to hire experienced crews ahead of the busy season resulted in lost contracts and missed revenue opportunities
Rising material costs and supplier payment terms strained working capital reserves, limiting operational flexibility

The Solution

Verde Landscapes partnered with a commercial lender to secure $425,000 in working capital financing. The company's established reputation, consistent revenue history, and strong local market position made it an attractive investment, with the loan structured over 5 years at competitive rates.

The funds were strategically deployed across three key areas: $180,000 was invested in new equipment including commercial-grade zero-turn mowers, a fleet truck, and advanced irrigation system tools; $165,000 was allocated to hiring and training eight additional full-time crew members before the peak season; and $80,000 was reserved for increased inventory of materials, supplies, and working capital to manage supplier payment terms more effectively.

Frank Valenzuela, Founder & Chief Operations Officer
"This working capital loan was transformative for our business. It allowed us to invest in equipment and hire experienced crews when we needed them most, turning seasonal constraints into year-round opportunities."

The Outcome

Revenue increased 45% year-over-year, growing from $1.2M to $1.74M within 18 months of securing the loan
Customer retention improved to 92% through enhanced service capacity, and the company added 34 new residential and commercial contracts
Equipment utilization rates increased by 35%, and crew productivity improved by 28% with better tools and training

Conclusion

The working capital loan directly addressed Verde Landscapes' growth constraints and enabled the company to capitalize on strong market demand in the Denver area. By aligning capital investment with strategic hiring and equipment purchases, the company transformed seasonal limitations into competitive advantages.

Looking Forward

Verde Landscapes is on track to achieve $2.1M in revenue by the end of year three and is exploring expansion into the Boulder and Colorado Springs markets. Management plans to utilize improved cash flow to pay down the working capital loan ahead of schedule while reinvesting profits into additional equipment and technology for landscape design and project management.