Maxim Commercial Capital Reports Strong Demand in Q1/21
APR 22, 2021 - 6:54 am
Maxim Commercial Capital reported strong demand during Q1/21. Its structured finance program proved popular during the period, with business owners leveraging their equity in real estate and owned heavy equipment to fund working capital and fuel growth. Despite low inventory of well-priced, low mileage Class 8 used trucks, Maxim Commercial Capital closed purchase financings ranging from $12,000 to $53,500 for hundreds of owner-operators across the U.S.
“These past three months were starkly different from a year ago when we were focused on supporting our existing customers to limit delinquencies and adapting to working from home,” Michael Kianmahd, executive vice president of Maxim Commercial Capital, said. “While many of our team members are still working from home, delinquencies are at historic lows and we onboarded over 40 new finance brokers with subprime borrowers needing growth financing.”
Q1/21 transactions submitted by finance brokers included a $425,000, 60-month, cash-out term loan secured by a first lien position on commercial and residential real estate and equipment for a business owner in North Carolina with a foreclosure history; an $87,400 purchase financing secured by a 2017 John Deere 8345R Tractor for a family business with challenged credit; and a $51,900 purchase financing secured by a 2013 Mack Granite 17’ Alum Dump Truck for a government contractor with a discharged bankruptcy.
Maxim Commercial Capital continued to fill a void in the truck financing sector, closing deals for startups, owner-operators with challenged credit needing to replace trucks and non-CDL owners of trucking companies. Examples included $55,000 funded for an owner-operator with good credit to get a 2016 Kenworth T800 with 198,000 miles; $22,000 for a non-CDL trucking operator in business for two years to get their second truck, a 2016 Volvo 670 with 492,000 miles; and $26,400 for a startup owner-operator with six years of driving experience to get a 2015 Mack CXU613 with 479,000 miles.
“We are optimistic, yet realistic, about the business climate and economic recovery,” Behzad Kianmahd, chairman and CEO of Maxim Commercial Capital, said. “The unknown risk of COVID-19 variants and the pace of economic recovery make it difficult to project. Conversely, we anticipate the pending infrastructure bill, strong vaccination rates and pent-up consumer demand will continue to drive strong demand for our financing solutions.”
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