How One Houston Pump Operator Leveraged Financing to Outpace Competitors

Greater Houston’s batch plants collectively dispatch over 61.8 million yd³ of concrete each year, almost as much as the entire state of California, highlighting the pressure on regional pump operators.

Our client, a ready-mix delivery and concrete-pumping company, faced stalled growth under a cash on hand only model. This meant every new concrete pump truck had to be purchased with cash available from jobs, leaving bids unfulfilled and operations strained when unforeseen delays arose. This was stressful for our customer because a gap in pump capacity meant lost contracts and eroded margins. Further, the client’s dream to grow into a commercial operation was almost derailed by limited liquidity and no formal credit facility.

Specifically, the owner and founder was facing these challenges:

• No revolving credit line to fund weekly material costs
• Working-capital constraints delaying fleet expansion
• Rapid market growth fueling project backlogs

When we met the owner, he told us:  

“On peak days, we turn away $50,000 –$75,000 in bids simply because we may not be able to finance the next concrete pump truck.”

Equify’s entrepreneurial based underwriting and sector expertise unveiled a key insight: by reclassifying depreciation from operating expenses to financing costs, the client’s true EBITDA emerged. This new perspective told us the business was strong enough to support structured debt tied to each asset’s revenue stream.

To help our client seize a slice of the infrastructure boom, Equify crafted a $1,278,565 PMSI term loan for two 2025 Mack concrete pump trucks (37 m & 57 m). These assets were projected to generate $350,000 and $535,000 in annual revenues, respectively. The trucks’ on deck to be purchased amortization schedule of $29,610/mo over 12 months was calibrated to maintain a 1.0× DSCR.

How We Helped:

1. Analysis: Isolated true EBITDA by reallocating $1.6 million in annual depreciation
2. Structuring: Designed PMSI-backed loan keyed to each boom’s revenue profile
3. Funding: Disbursed $1.28 MM directly to the OEM for immediate vehicle delivery

Results & Transformation

Within the first year, the financing delivered immediate, measurable gains:

• Fleet Capacity: Two new concrete pump truck units added to meet peak pumping demands
• Revenue Uplift: $885,000 in incremental annual revenue projected
• Growth: Since the first Equify deal in 2016, the client climbed from $1 MM to $100 MM in annual revenue

Why It Matters to You:

Civil-infrastructure leaders know that pump availability can make or break schedules as North America readies to spend $72.6 Billion annually on ready-mix in 2025 and beyond.

With targeted equipment lending, you can:

• Align pump-fleet growth to the $1.2 Trillion federal infrastructure agenda
• Preserve cash for surge projects, not sunk costs in vehicle acquisition
• Enhance bid competitiveness on road and bridge contracts of all scales

Don’t let financing bottlenecks stall your next concrete pour.
Contact Equify Financial for a free equipment financing review: https://www.equifyfinancial.com/roads-and-bridges