MMP Capital announced the renewal of its $125 million secured warehouse facility with Deutsche Bank, a move that positions the Long Island-based company for continued growth as it enters its third year as an on-balance sheet lender.
John-Paul Smolenski, CEO of MMP Capital, views this renewal as a validation of the company’s approach to business. "This partnership with Deutsche Bank reflects our growth and our ability to deliver more value to our clients. As we continue to evolve, we’re proud to pass on the lower cost of capital with more competitive rates that allow our clients to invest in their futures at a lower cost, and maximize their profits" said Smolenski.
The facility renewal underscores the strong partnership between MMP Capital and Deutsche Bank, which has been instrumental in MMP’s growth over the past few years. With all the turmoil in the financial markets over the last few years, MMP Capital has been a reliable lending company that small business owners can count on for their commercial financing needs.
Implications for High-End Clients and Market Share
One of the most significant aspects of this renewed facility is MMP Capital’s ability to offer lower interest rates to its customers. Most especially those in the “A paper” credit category who traditionally financed with local banks, but have transitioned their business over MMP Capital with their competitive financing rates, as well as a fast, convenient, and customer friendly approach to financing. This segment, which includes businesses with strong credit profiles, stands to benefit the most from MMP’s improved terms with Deutsche Bank. By passing on these savings, MMP Capital is suited to continue expanding its footprint in competitive markets.
Smolenski emphasizes the importance of this customer segment in MMP’s long-term strategy. "Our high-end clients are a crucial part of our business. They are often the ones making repeat purchases and investing in the latest technologies, so being able to offer them more favorable financing terms will help us continue to grow alongside them," he says.
The focus on grabbing more market share is not limited to just aesthetic medical devices and healthcare. MMP Capital has also expanded its reach into other industries, including Ophthalmology and Dental care, both of which have seen increased demand for financing solutions in recent years.
Addressing Economic Pressures and Lending Challenges
The equipment financing industry has not been immune to the ups and downs of the economy. Rising interest rates, inflation, and uncertainty around the future have made it harder for many businesses to secure financing. Traditional lenders often adapt slowly, leading many small and midsize businesses to seek alternatives.
MMP Capital has continued to thrive, however. In the second quarter of 2023 alone, the company saw a 26% year-over-year increase in originations, reaching nearly $100 million for the quarter. Part of this success lies in MMP’s ability to move quickly and meet the needs of clients who cannot afford to wait.
“Our clients don’t have the luxury of time,” Smolenski says. “You have to strike while the iron is hot. When customers have a need for equipment to grow their business, they need financing, they need it now. That’s where we step in and make it happen for our customers.”
MMP Capital aims to continue scaling its operations while maintaining the personalized service that has been its hallmark since its founding. MMP is moving into a new state-of-the-art office that is 2.5 times the size of their current office. With a strong relationship with Deutsche Bank and a clear focus on customer needs, the company is poised for further growth in the years to come, and we want to make sure we have the infrastructure, and manpower to support our customers.