Maxim Commercial Capital Funds 170 Businesses in Q3/19
OCT 16, 2019 - 6:50 am
Maxim Commercial Capital provided hard-asset secured financing to 170 small and mid-sized businesses (SMBs) during the third quarter of 2019.
Maxim saw increased demand for real estate-secured financing during the third quarter, particularly from borrowers seeking cash-out refinancings and debt consolidation. Funded transactions included a $1.04 million 5-year loan to a family-owned real estate development company to refinance several expensive loans, renovate commercial properties and for working capital. The loan is secured by second liens on three income-producing commercial properties and a third lien on a rental single family residence.
Loan brokers frequently contact Maxim for SMBs seeking equipment purchase financing or working capital for growth. For example, a small business owner fulfilling construction contracts with major telecommunications companies is expanding his business with the purchase of his fourth Ditch Witch directional drill. Maxim financed the $118,100 drill while preserving the borrower’s capital by securing the loan with the new drill and three other drills the borrower owned free-and-clear.
“Despite the softening in sales of used class 8 and class 6 trucks, Maxim saw an uptick in submissions and fundings for owner-operators with challenged credit during the third quarter,” noted Behzad Kianmahd, Maxim’s chairman and CEO.
Fundings included 75% purchase financing of a 2012 Isuzu NPR-HD by a start-up owner-operator with very poor credit. Maxim also helped an owner-operator – whose credit report revealed three charge-offs, four collections accounts and large past due amounts on revolving credit accounts – purchase a 2013 Freightliner Cascadia with a financing package that covered 100% of the cost of a 24 month/200,000 mile Premium 2000 comprehensive warranty.
“The robust economy with low unemployment in recent years has inspired many entrepreneurs to start or grow businesses with our help,” said Michael Kianmahd, executive vice president at Maxim. “Some lenders may be pulling back given the recent rumors of an impending recession and the current trade war. However, we continue to approve a high percentage of submissions because our team, with decades of experience, knows how to assess asset values in changing economies.”
Maxim Commercial Capital helps small and mid-sized business owners by providing financing in amounts up to $3 million secured by heavy equipment and real estate. Maxim facilitates equipment purchases, provides working capital and refinances debt for companies across all industries located nationwide.
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