Torres Nevárez Construction Secures Growth

Central California construction firm used $200K working capital loan to expand fleet and staffing, increasing project capacity by 40% within 12 months.

Tomás Nevárez, President & General Contractor of Torres Nevárez Construction Company a construction business in Central California standing confidently

Executive Summary

Torres Nevárez Construction, a 15-year-old family business in Fresno, California, faced rapid growth constraints despite strong demand for their services. The company secured a $200,000 working capital loan to bridge the gap between project expenses and client payments, enabling them to scale operations and capture new market opportunities.

The Challenge

Limited liquidity to purchase equipment and materials before client payments arrived
Inability to bid on larger commercial projects due to insufficient crew capacity
Cash flow gaps between project completion and invoice collection stretched 45-60 days

The Solution

Torres Nevárez Construction partnered with a local community lender to secure a $200,000 working capital line of credit structured as an 18-month term loan. The flexible structure allowed the company to draw funds as needed without paying interest on unused portions, providing crucial breathing room during peak construction seasons.

The company deployed funds strategically: $95,000 toward purchasing three commercial-grade pickup trucks and construction equipment, $60,000 for payroll expansion to hire six additional skilled tradespeople, and $45,000 as operating reserve for materials procurement. This capital injection eliminated the company's cash flow bottleneck and positioned them to pursue larger-scale residential and commercial contracts that had previously been out of reach.

"The working capital loan gave us the flexibility to bid on larger projects without straining our cash flow. We doubled our crew size and added three new trucks within months."
Tomás Nevárez, President & General Contractor

The Outcome

Increased annual revenue from $1.2M to $1.68M (40% growth) within 12 months
Expanded workforce from 12 to 18 employees, reducing project timelines by 25%
Improved cash conversion cycle from 58 days to 31 days through better project management

Conclusion

The working capital loan transformed Torres Nevárez Construction from a capacity-constrained regional player into a competitive mid-sized contractor. The company successfully completed 18 major projects in Year One post-financing, including their largest commercial contract to date.

Looking Forward

Torres Nevárez Construction has already repaid 60% of the loan ahead of schedule and is exploring a second, larger line of credit to fund a permanent equipment facility. The company plans to expand into adjacent counties and establish a dedicated commercial division within the next two years.