Maxim Commercial Capital reported that it increased originations in each successive quarter of 2022 and also launched a new credit tier program for truck financing.
Maxim provides loans and leases from $10,000 to $3 million secured by Class 8 trucks, heavy equipment and real estate for business owners across the United States. It funded purchase financings, equipment leases, working capital and debt consolidations for customers located in 37 states during 2022.
“We revised our truck financing program to provide customers who have better credit with more favorable terms than our traditional, subprime customers receive,” Ryan Selway, director of vendor sales at Maxim Commercial Capital, said. “The program’s strong reception from vendors and brokers quickly increased our transaction volume to better credits to 48% of aggregate originations.”
Recent truck loans under the new program included 80% purchase financing for an experienced owner-operator with a 734 FICO score to buy a $69,000 2015 Peterbilt 579 with 515,000 miles and 67% purchase financing for a non-CDL startup business owner to buy a $51,000 2016 Freightliner Cascadia with 488,000 miles. In addition, a startup owner-operator and homeowner with a 653 FICO score leased an $80,000 2018 Kenworth T880 with 488,000 miles with minimal cap reduction under the program.
Maxim’s heavy equipment and real estate secured financings during the year ranged from $20,000 to $2 million. The $2 million transaction enabled a repeat client with a perfect pay history to expand its assisted living and hospice care business by purchasing a $3.2 million facility in Malibu, CA. Other originations included $57,000 in purchase financing for a four-year-old towing company to add a 2019 MV607 Rollback tow truck and $340,000 in cash out financing secured by first liens on the borrower’s residence, a rental home and business FF&E for an environmental consulting business to consolidate debt and expand its business.
“We continued investing in our systems and team during 2022 in anticipation of filling a growing gap in small business financing in 2023,” Michael Kianmahd, executive vice president of Maxim Commercial Capital, said. “The ongoing economic slowdown on the back of interest rate increases and market volatility is causing lenders to tighten their credit windows, translating into favorable conditions for our asset-based loan and leasing programs.”
