Maxim Commercial Capital (Maxim) reported exceptionally strong year-over-year growth during the first quarter of 2023. The private finance company closed nearly three times more truck financing transactions during the period than in 2022, and helped numerous business owners replace expensive MCA loans with creatively structured, lower cost term loans. Maxim provides loans and leases from $10,000 to $3 million secured by class 6 and 8 trucks, trailers, heavy equipment and real estate for entrepreneurs nationwide.
“Owner-operators have been facing many challenges, from high truck and fuel prices to volatile financial markets, which has caused traditional prime lenders to further tighten their credit criteria,” said Behzad Kianmahd, Chairman and CEO. “The recent expansion of our credit matrix enables us to help more entrepreneurs by advancing higher amounts to better credits for used truck purchases and leases, as well as funding startups and subprime borrowers.”
Truck financings during Q1 2023 included 80 percent purchase financing for an experienced owner-operator with a 670 FICO to buy a 2020 Freightliner Cascadia 125 with 441,000 miles for $76,660, including warranty; 75 percent purchase financing for an experienced owner-operator with challenged credit to buy a 2018 Freightliner Cascadia with 468,000 miles for $65,000; and, 74 percent financing for a start-up owner-operator with a 530 FICO to buy a 2019 Peterbilt 579 with 556,000 miles for $69,900.
Maxim continued to help entrepreneurs grow their businesses and improve cash flow by providing equipment loans and leases, real estate secured financing, working capital, and debt consolidations.
Creatively structured transactions during Q1 2023 included refinancing MCA loans with less expensive term debt secured by real estate and heavy equipment. Examples include a $110,000, six-month term loan for the owner / operator of an assisted living facility in Pennsylvania. The loan is secured by second liens on the borrower’s home and the assisted living facility and first liens on heavy equipment. Maxim structured a $75,000 sale leaseback on a 2020 Peterbilt 348 dump truck and 2020 Bobcat E50 Mini Excavator so a California specialty contractor could refinance expensive MCA loans and pursue growth opportunities.
“We continue to expand by hiring talented operations and accounting personnel and are prepared for ongoing market instability,” said Michael Kianmahd, Executive Vice President. “By carefully tracking equipment and real estate values, we maintain plenty of capacity to fund deals in volatile markets.”