North Mill Equipment Finance reported that 2020 featured the best 12 months in the company’s 60-year history, as loan and lease originations reached an all-time high. Reporting surges in volume throughout 2020, the organization beat each of its prior high-water marks, with new records set for annual, quarterly and monthly volume as December came to a close.
“Despite the challenges imposed by the pandemic, 2020 turned out to be an extraordinarily successful year for North Mill, as our key performance indicators were up across the board,” David C. Lee, chairman and CEO of North Mill Equipment Finance, said. “Annual volume topped $183 million, a robust increase of 33% from 2019. Average FICO was 713, an improvement of 19 points over last year, and our average deal size increased 8% to $77,606.”
The company reported record originations in Q3/20 only to surpass that record in the fourth quarter, as volume surged an additional 10% to close at $55 million. The newly attained highpoints continued through year end, as December’s originations came in at just under $20 million, the company’s best month ever, beating the previous peak in November.
A major factor responsible for North Mill’s success in 2020, according to Lee, was an ongoing commitment to portfolio diversification, which helped referral agent partners place more business with the company.
“Transportation, which made up nearly 100% of our asset portfolio a few years ago, now represents about 42% of funded volume, with sleeper trucks, which just five years ago represented over 60% of funded volume, now accounting for just 9% of financed transactions,” Lee said.
According to North Mill, another element contributing to its growth was a catalog of process improvements targeting referral agents and customers.
“In 2020, we introduced DocuSign, electronic power of attorney and wireless GPS among other initiatives designed to improve the customer experience,” Mark Bonanno, chief operating officer of North Mill Equipment Finance, said. “And there’s much more to come in 2021, especially as it relates to technology enhancements and user-interface touch points for our brokers.”
In preparation for the coming year, North Mill closed on two Q4/20 capital market transactions. The size of the company’s senior loan facility with Deutsche Bank was increased to $125 million, while a new $50 million senior loan facility was closed with Truist Bank in December. The loan facilities increased North Mill’s total credit availability to $205 million.
“Our ability to service our bank portfolios through a global pandemic while simultaneously setting new records at regular intervals provides our lending partners with the confidence necessary to initiate and grow their commitments with us,” Pier Snider, CFO of North Mill Equipment Finance, said.
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