Maxim Commercial Capital Reports 300% Y/Y Increase in Funded Deals in Q2/23
JUL 18, 2023 - 6:47 am
Maxim Commercial Capital reported nearly 300% more funded deals in Q2/23 than in the same period in 2022, despite broader economic headwinds and rising interest rates. To support this growth, the hard-asset secured lender hired additional team members in credit and collections.
“Fortunately for our customer base, used truck and heavy equipment prices have returned to more reasonable levels over the past few months,” Behzad Kianmahd, chairman and CEO of Maxim Commercial Capital, said. “Concurrently, we expanded our credit matrix to span from better credits to subprime and startup borrowers and lowered down payment requirements. This combination is enabling more borrowers to acquire the heavy equipment and trucks they need to serve clients.”
Maxim provides loans and leases from $10,000 to $3 million secured by Class 6 and Class 8 trucks, trailers, heavy equipment and real estate for entrepreneurs across the United States.
Maxim’s truck financings during Q2/23 included 80% purchase financing for an owner-operator with a 651 FICO score to buy their first truck, a 2019 Peterbilt 579 with 475,000 miles, for $65,362; 76% purchase financing for a startup owner-operator with a 763 FICO score to buy a 2019 Peterbilt 579 with 362,000 miles for $76,054; and 75% financing for an owner-operator with a 541 FICO score to buy a 2018 Freightliner Cascadia with 468,000 miles for $65,000.
Maxim’s real estate secured financings during the quarter included $280,000 in working capital for a startup business secured by a second lien on a leased single-family home in Venice, CA. The borrower is an entrepreneur with multiple income sources whose financing alternatives likely would have diluted shareholder equity. Maxim also funded a $250,000 term loan for a family-owned business secured by a second lien on a personal residence. The funds were used to pay off merchant cash advance loans, settle delinquent taxes and provide additional working capital.
“Our doors are wide open for business, while many other specialty lenders are pulling back from this choppy market,” Michael Kianmahd, executive vice president of Maxim Commercial Capital, said. “This is made possible by our dedicated, hard-working team and our deep expertise in providing critical financing to our customer segments.”
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