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Maxim Commercial Capital Funded from $20,000 to $2MM in Q2

July 19, 2022, 07:10 AM
By
Topic: Industry News

Maxim Commercial Capital provided creative financing solutions for small businesses across the U.S. during the second quarter of 2022. Fundings ranged in size from $20,000 for an owner-operator to purchase a new rig to $2.0 million for a residential care company to purchase an additional facility to grow its business.

“This year’s low inventories and skyrocketing prices for heavy equipment and trucks have made it difficult for our customers to buy equipment without depleting cash on hand,” said Michael Kianmahd, Executive Vice President. “Fortunately, many borrowers are enjoying substantial increases in real estate equity, which we leverage up to 70 percent LTV to reduce or eliminate down payments on equipment and real estate purchases, to refinance short-term debt and for working capital.”

Creatively structured transactions involving additional collateral during the period included 100 percent purchase financing for a newer contractor with challenged credit to buy a 2009 CAT 289C Skid Loader, utilizing an owned 2015 Kubota KS957 as additional collateral. A repeat customer expanded her residential care business by purchasing a $3.2 million home in Malibu, CA, with a $2.0 million loan from Maxim secured by first liens on the new home and an owned office building and second liens on two other residential care homes.

Based on applications submitted by owner-operators and non-CDL owners of Class 8 trucks during Q2 2022, affordability is improving. “We are starting to see inflated truck values slowly decline,” said Ryan Selway, Director of Vendor Relations. “This trend is encouraging as many drivers simply can’t afford to stay on the road if they have to buy a new rig at the inflated prices.”

Recently funded trucks included a 2015 Kenworth T680 purchased for $89,939 with a two-year warranty by a non-CDL owner who had been turned down by prime lenders; a 2016 International ProStar purchased for $67,437 by a start-up owner-operator with five years CDL; and a 2018 Kenworth T680 purchased for $85,213 with a two-year warranty by a start-up owner-operator with 10 years CDL.

Maxim is expanding its team in Los Angeles, CA.

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