Maxim Commercial Capital saw increased demand across all lending programs during the third quarter 2021. Contractors nationwide are purchasing heavy equipment in response to a surge in infrastructure projects and the active construction industry. Entrepreneurs owning residential, commercial and industrial real estate are leveraging properties to fund immediate business opportunities, and owner-operators of Class 8 trucks are upgrading and adding equipment to fulfill strong contracts.
“The private lending market is normalizing now that the PPP financing program is over and COVID-19 infection rates are declining in most markets,” said Michael Kianmahd, Executive Vice President. “With most students back in school and improving vaccination rates, it’s a very different world than a year ago. We are very optimistic for a stable Q4 and busy 2022.”
Maxim funded numerous truck purchases for startup and non-CDL buyers with good credit and experienced owner-operators with challenged credit during the quarter. Representative transactions included a 2018 Freightliner Cascadia with 418,000 miles purchased for $70,200 by a startup owner-operator with an 819 FICO; a 2017 International ProStar with 390,000 miles purchased for $58,570 by a non-CDL owner with a 795 FICO and his partner, with an experienced driver with bad credit; and a 2015 Peterbilt 579 with 456,000 miles purchased for $53,374 by a newer owner-operator with fair credit.
Transactions for construction equipment included a $103,000 loan to a former client to purchase a 2015 Peterbilt 365 dump truck to expand his business. The borrower minimized his down payment by pledging his paid-off 2010 Peterbilt 365 dump truck as additional collateral. Other representative fundings were $39,400 loan to a Colorado-based contractor with challenged credit to purchase a 2014 Hitachi AX350 LC5 excavator, and a $105,300, 54-month loan to a start-up trucking and hauling company in Florida to buy a 2022 Kenworth T800 Tri-Axle dump truck, thereby eliminating its $3,000 weekly rental expense.
“Our borrowers’ demand for financing provides a good barometer for the post-pandemic recovery,” said Behzad Kianmahd, Chairman and CEO. “They are securing strong contracts, adding employees, and investing in additional equipment to grow their businesses. We are on a mission and very pleased to help them achieve the American dream of entrepreneurship.”