North Mill Equipment Finance reported that its originations for Q2/21 exceeded a company record-breaking $120 million. The company also set a new record for June, as originations closed at just under $26 million, marking the best month in the company’s history. In addition, traditionally funded quarterly volume through North Mill’s referral network exceeded $70 million, which was another record for the organization.

Contributing to North Mill’s strong quarter was the acquisition of a $50.3 million portfolio of truck and trailer leases through an arrangement with North Mill’s long-time referral partner, Greg Minsky of Pelagic Capital. The portfolio was debt financed through a new facility with East West Bank.

“Quarterly volume generated by the broker channel is up 118% from the same period last year. Compared to Q2 of 2020, the company witnessed its average FICO climb five points to 716, while the number of applications submitted increased by close to 33%, finishing at a record 5,015 transactions,” David C. Lee, chairman and CEO of North Mill Equipment Finance, said. “We have established ongoing relations with a solid base of dedicated, loyal referral agents that consider us a partner in every sense of the word. They’ve helped grow our business and bring the company to unprecedented heights.”

Lee said North Mill’s weighted average yield dropped 50 basis points from the same period last year, a result of higher quality deals submitted by referral agents. In a move designed to help close even more business, North Mill revised its buy rate schedule on the first of this month. Rates were lowered in some cases by as many as 150 basis points, with the lowest buy rate now just 6.25%.

“North Mill will continue to develop other programs in support of the broker channel, such as discounting arrangements with key referral sources, including providing capital to some of those brokerages,” Lee said.

North Mill also streamlined and simplified its commission matrix and, earlier this year, doubled its maximum deal size from $300,000 to $600,000. The new commission schedule includes a payout category for these transactions.

“North Mill is achieving outstanding results across the business. Every department is firing on all cylinders,” Mark Bonanno, president of North Mill Equipment Finance, said. “On the operations side of the business, collections for the month of June were at an all-time high, while delinquencies and repossessions remained exceedingly low. Our IT department is working feverishly to digitally enhance the broker experience. They’re unveiling a robust broker portal that will help referral partners better manage deal flow, submit and structure transactions and monitor key performance indicators.”

North Mill also is creating a self-service platform where brokers can analyze, price and submit deals according to the company’s credit parameters.

In addition, to better manage its growth rate, North Mill opened two new regional offices in the second quarter, including one in Irvine, CA, to service referral agents on the West Coast and one in Vorhees, NJ, to leverage the company’s workforce on the East Coast. North Mill opened a third office in Dover, NH, earlier this year.