Maxim Commercial Capital reported a company-record low in delinquencies in Q1/22 along with increased fundings to better credits and demand for cash-out financings secured by real estate and equipment.

“As a closely-held company, we have the luxury of pivoting our business strategy real time based on market conditions,” Michael Kianmahd, executive vice president of Maxim Commercial Capital, said. “This benefitted us during the pandemic and continues to serve us and our borrowers during today’s volatile global economic conditions. We continue to invest in our operating infrastructure and are seeking to fill a few key positions.”

Maxim Commercial Capital onboarded 40 new finance broker relationships during Q1/22. In addition, the company’s team educated finance brokers on ways to expand their businesses through webinars and a bylined article recently published by the American Association of Commercial Finance Brokers.

Maxim Commercial Capital’s cash-out financings funded during the first quarter included a $340,000 loan to an environmental consulting business in New Jersey secured by first liens on the business owners’ primary residence, a rental property purchased with the financing and business furniture, fixtures and equipment. In addition, a general contractor and real estate investor in Chicago experiencing customer collections problems borrowed $218,000 from Maxim Commercial Capital secured by a first lien on an investment property and second liens on two residential income properties. The contractor used the funds to refinance a merchant cash advance, complete renovations of an investment property, improve rental properties and bring a mortgage current.

With continuing record-high Class 8 truck prices, Maxim Commercial Capital loosened credit standards for certain customer categories during the first quarter. Representative truck purchase transactions in the quarter included a 2019 Peterbilt 579 purchased for $115,692 by a non-CDL owner of two trucks who has been in business for two years; a low mileage 2016 Kenworth T800 purchased for $107,283 by a startup owner-operator homeowner with a 628 FICO score and strong bank statements; and a $108,000 2018 Peterbilt 579 replacement truck for an owner-operator with a 766 FICO score.

“Thanks to our diligent team, we exceeded our expectations during the pandemic and are experiencing strong profitability and record low losses,” Behzad Kianmahd, chairman and CEO of Maxim Commercial Capital, said. “We are well prepared to withstand the continuing global economic crises but hoping for a return to peace in Europe and beyond.”