Maxim Commercial Capital announced it finished 2019 with the busiest December in the company’s 11-year history and funded 664 loans to small and mid-sized businesses (SMBs) during the year. Maxim lends $10,000 to $3 million secured by heavy equipment and real estate to facilitate asset purchases, enhance working capital and to refinance expensive short-term debt.
“We continued to invest in our team during 2019 by adding a Director - Broker Relations, a Chief Financial Officer and two additional members to our portfolio management department,” said Michael Kianmahd, Executive Vice President of Maxim. “Our newest team members integrated seamlessly into the company to further optimize our relationships with borrowers, finance brokers, truck vendors and finance partners. With our expanded team, we are on a solid trajectory to meet the financing needs of a record number of SMBs in 2020.”
Maxim partners with finance brokers and used truck vendors across the U.S. to finance borrowers who need capital quickly or are not bankable due to credit challenges, incomplete financial data, past bankruptcies or lack of business history. Over 2,000 finance brokers have submitted financing applications to Maxim since 2009. The company’s sales representatives maintain relationships with over 1,500 used truck vendors nationwide.
The largest transaction Maxim funded during the year was a $2 million, 60-month term loan secured by second liens on six commercial real estate properties in San Antonio, TX. This structured financing provides the growth capital the business owner needs while minimizing his overall cost of funds by leaving favorable first lien financing in place.
The smaller transactions funded during the year facilitated heavy equipment purchases of yellow iron and Class 8 and Class 6 used trucks for owner-operators with challenged credit. Despite contraction among other lenders in the market during the year, Maxim consistently provided same-day approvals and processed a record number of submissions in December 2019.
“By adapting our underwriting guidelines to market conditions and managing around changes in used equipment values in 2018 and 2019, we avoided the portfolio problems faced by some of our competitors,” said Behzad Kianmahd, Maxim’s Chairman and Chief Executive Officer who has over 20 years of industry experience.
Closed transactions included 75 percent purchase financing of a 2016 Kenworth T680 retailing for $71,101 for an owner-operator with limited experience and outstanding medical bills. Maxim also helped numerous startup owner-operators purchase their first rigs, such as a 2016 Freightliner Cascadia valued at $65,980, with financing packages that cover 100 percent of the cost of 24 month/200,000 mile Premium 2000 comprehensive warranties.
Maxim continues to expand its team to support the company’s growth.