The Business

For over a decade, this owner-operator trucking company has built a solid reputation managing fleet operations across Texas with a focus on municipal contracts. The company operates 12 trucks and generates approximately $2.4M in annual revenue, with primary clients including DOT contracts with local municipalities.

The owner had consistently met delivery schedules, maintained safety compliance, and built strong relationships with government agencies. However, growth created a new challenge: market demand and existing contracts required expansion, but securing the right financing proved difficult in an industry often viewed as high-risk by traditional lenders.

The Challenge

The owner had attempted to secure SBA financing through a traditional bank, only to face rejection due to what they were told was "industry risk classification." This setback was frustrating because the business fundamentals were sound: strong contracts, consistent revenue, and a proven operational track record. The company also had existing equipment loans, which further complicated the financing picture for risk-averse lenders.

Pain Points

  • Previous SBA application rejected by bank due to "industry risk"
  • Needed 10-year term to keep monthly payments manageable
  • Existing equipment loans created debt covenants
  • Wanted to add 4 new trucks and hire 6 drivers simultaneously

The Mondra Capital Approach

Rather than accepting the rejection, Mondra identified what the first bank had overlooked: there are SBA-preferred lenders with deep transportation industry expertise who understand municipal contract structures and seasonal cash flow patterns. The challenge wasn't the business; it was finding the right lender for this specific sector.

We structured the deal around a debt service coverage ratio (DSCR) of 1.35x, demonstrating clear repayment capacity based on existing contracts and projected revenue. The SBA 7(a) loan incorporated the existing truck fleet as collateral, with a fixed rate and 10-year amortization that fit the owner's operational budget. The transportation-focused lender reviewed the municipal contracts, confirmed payment history, and approved the application in 21 business days.

"The bank told me trucking was too risky. Mondra found a lender that actually understood our contracts and how the business works." Owner, Austin TX

The Outcome

Results Achieved

  • $500K funded at fixed rate, 10-year term with $4,800/month payment
  • Added 4 new trucks and hired 5 additional drivers
  • Landed 2 new municipal contracts within 60 days of expansion
  • Improved fleet utilization across existing and new routes

With the capital in hand, the owner moved quickly to add capacity. Within 60 days of receiving the funds, the company had equipped the new trucks and onboarded trained drivers. The expanded capacity allowed them to pitch for and win two new municipal contracts that had previously been out of reach due to fleet size constraints. The fixed 10-year term provided payment predictability, and the loan closed just as the owner predicted — in just over 3 weeks.

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