Sierra Haul Line of Credit Success

Nevada trucking company secured $425K line of credit to expand fleet and operations, achieving 40% revenue growth within 18 months.

Quinn Quinton, Fleet Operations Director of Sierra Haul Transportation LLC a trucking business in Nevada standing with a relaxed, confident posture

Executive Summary

Sierra Haul Transportation, a growing regional trucking company in Reno, Nevada, faced critical cash flow constraints that limited their ability to capitalize on increasing freight demand. By securing a $425,000 business line of credit, the company expanded its operational capacity and achieved significant revenue growth. This case study demonstrates how strategic financing enabled a mid-sized trucking operation to scale effectively.

The Challenge

Insufficient working capital to purchase additional trucks and maintain inventory of spare parts
Delayed cash flow from invoicing cycles (30-60 days) creating operational bottlenecks
Inability to secure contracts requiring larger fleet capacity due to equipment limitations

The Solution

Sierra Haul chose a $425,000 business line of credit because it provided flexible, on-demand access to capital without the rigidity of a traditional term loan. The company needed the ability to draw funds seasonally and for unexpected operational needs, making a revolving credit facility ideal for their variable business cycle. Additionally, the lower interest rates compared to merchant cash advances made the LOC more cost-effective for their margin-dependent industry.

The funds were strategically deployed across three key areas: $280,000 for the acquisition of two Peterbilt semi-trucks equipped with modern fuel efficiency technology, $95,000 for working capital to cover fuel, maintenance, and payroll during peak seasonal fluctuations, and $50,000 reserved for emergency repairs and equipment upgrades. Within the first six months, the expanded fleet enabled Sierra Haul to secure three major long-term contracts with regional distribution companies that had previously been out of reach.

"This line of credit was transformational for our business. We went from waiting months between jobs to having consistent, profitable routes. The flexibility allowed us to seize opportunities without depleting our working capital."
Quinn Quinton, Fleet Operations Director

The Outcome

Fleet capacity increased from 23 to 25 trucks, generating an additional $180,000 in annual revenue
Working capital efficiency improved by 35%, reducing cash conversion cycle from 52 days to 34 days
Gross margins expanded from 18% to 22% through better route optimization and fuel management

Conclusion

The $425,000 line of credit proved instrumental in Sierra Haul's growth trajectory. By providing access to flexible capital without the burden of immediate repayment obligations, the company was able to invest strategically in assets while maintaining healthy cash reserves for operational stability. Within 18 months, revenue increased 40% and the company reduced its reliance on the line of credit through improved cash flow management.

Looking Forward

Sierra Haul is planning to utilize the remaining available credit capacity to add two more trucks and establish a maintenance facility to reduce downtime and improve operational efficiency. Management projects continued annual growth of 25-30% over the next two years, positioning the company to become the largest independent trucking operation in the Nevada-Utah region.