Maxim Commercial Capital Funds Deals in 32 States During Q3/20
OCT 15, 2020 - 7:08 am
Maxim Commercial Capital funded hard asset-secured financings for small and mid-sized businesses (SMBs) in 32 states during Q3/20. Maxim lends from $10,000 to $3 million to SMBs, secured by heavy equipment and real estate, to facilitate asset purchases, working capital and to refinance short-term debt.
“We are indebted to our loyal customers, equipment vendors and finance brokers for their support in these trying times,” Behzad Kianmahd, chairman and CEO of Maxim Commercial Capital, said. “Through our committed staff and managers’ great teamwork, we are continuing to fulfill the needs of our customers while also improving operations through technology investments and new policies and procedures. We leveraged the work-from-home conditions to accelerate these initiatives, benefitting our team and the communities we serve.”
While the credit markets remained tight during the period, Maxim experienced stabilized funding volume while maintaining its credit discipline, according to the company. Additionally, Maxim said its delinquencies neared historically low levels as the country emerged from the shelter-in-place orders mandated in response to the COVID-19 pandemic.
Transactions funded in the third quarter included a $52,100 app-only loan secured by a 2019 Chevy 6500HD Rollback Tow Truck; $33,750 for the purchase of a 2016 Case 580 Super N Excavator; $30,600 for a Utah-based owner-operator to replace his truck with a 2016 Freightliner Cascadia; and $35,600 for a California-based owner operator with a 458 FICO and 12 collection accounts to purchase a 217 Kenworth T680.
A substantial increase in retail prices of quality used trucks, caused in part by wholesalers/ EOMs withholding inventory, has created an inventory shortage, according to Maxim, which believes current discrepancies between the retail and fair value of used trucks will stabilize in the fourth quarter, with financing volumes returning to pre-COVID-19 levels in early 2021.
“We welcomed the return of cautious optimism in the third quarter,” Michael Kianmahd, executive vice president of Maxim Commercial Capital, said. “While concerns around the pandemic drove behavior in Q1 and Q2, our customers, many of whom are in essential industries, think the worst is behind us. As we continue toward a strong year end, we maintain our commitment to our customers, referral partners and team members, and look forward to 2021.”
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