Maxim Commercial Capital reported year-over-year growth during Q1/23, as the private finance company closed nearly three times more truck financing transactions in Q1/23 than in Q1/22 and helped multiple business owners replace merchant cash advance loans with term loans.
“Owner-operators have been facing many challenges, from high truck and fuel prices to volatile financial markets, which has caused traditional prime lenders to further tighten their credit criteria,” Behzad Kianmahd, chairman and CEO of Maxim Commercial Capital, said. “The recent expansion of our credit matrix enables us to help more entrepreneurs by advancing higher amounts to better credits for used truck purchases and leases, as well as funding startups and subprime borrowers.”
Maxim Commercial Capital’s truck financings during Q1/23 included 80% purchase financing for an experienced owner-operator with a 670 FICO score to buy a 2020 Freightliner Cascadia 125 with 441,000 miles for $76,660, including warranty; 75% purchase financing for an experienced owner-operator with challenged credit to buy a 2018 Freightliner Cascadia with 468,000 miles for $65,000; and 74% financing for a startup owner-operator with a 530 FICO score to buy a 2019 Peterbilt 579 with 556,000 miles for $69,900.
Other transactions from Maxium Commercial Capital during Q1/23 included refinancing MCA loans with term debt secured by real estate and heavy equipment. Examples included a six-month, $110,000 term loan for the owner/operator of an assisted living facility in Pennsylvania. The loan is secured by second liens on the borrower’s home and the assisted living facility and first liens on heavy equipment. Maxim also structured a $75,000 sale leaseback on a 2020 Peterbilt 348 dump truck and 2020 Bobcat E50 Mini Excavator so a California specialty contractor could refinance MCA loans and pursue growth opportunities.
“We continue to expand by hiring talented operations and accounting personnel and are prepared for ongoing market instability,” Michael Kianmahd, executive vice president of Maxim Commercial Capital, said. “By carefully tracking equipment and real estate values, we maintain plenty of capacity to fund deals in volatile markets.”
