North Mill Equipment Finance LLC, an independent commercial equipment lender located in Norwalk, CT, announced it posted record originations for the first half of 2020. Funded volume reached nearly $80 million, representing a growth rate of 40 percent over the same period last year.
“Despite the many challenges imposed by the global pandemic, we have managed to achieve unprecedented volume,” said David C. Lee, Chairman and CEO, North Mill.
“In the first quarter of this year, we were up 125 percent from Q1 2019. Once the coronavirus took a foothold, ensuing market volatility necessitated taking a more conservative approach as we adjusted our funding guidelines to avoid taking on too much risk,” Lee explained. The modified requirements notwithstanding, total volume for the first six months of 2020 outpaced last year’s and the average FICO shot up from 693 to 708, representing an increase in better-credit customers.
What has not changed, according to Lee, is the organization’s unwavering commitment to remaining open and to supporting the hundreds of referral agents with whom North Mill partners. The company’s persistent strategy to concentrate on broker-only originations has paid off as 256 different referral partners have funded a transaction so far this year.
“As we all adjust to the new normal, we will continue to support our referral partners and modify our offering to meet the evolving needs of the customer,” he said.
Historically known as a lender for sub-prime owner operator, long-haul truckers, North Mill has burgeoned into a versatile finance company with a portfolio comprising numerous asset types across a wide array of industries.
Transportation, which made up nearly 100 percent of the firm’s asset portfolio a few years ago, now accounts for well under 50 percent of funded volume. As the organization’s asset mix has expanded, so too has the number of referral agents interested in working with North Mill.
“A record-breaking number of new applications has been processed this year from brokers looking to establish a relationship. We couldn’t be more pleased,” Lee said.
He also attributes the increase in originations to the firm’s swift response to market demands. Most recently, North Mill lowered its time in business requirement from three years to two, a modification that helped broker partners by unlocking a pool of additional borrowers who otherwise would have been declined. Additionally, the company updated its equipment guidelines to provide greater opportunity to fund more asset classes such as medical, agricultural, and printing.
To sustain continued growth, North Mill relocated its corporate headquarters to the largest, modern corporate park in Connecticut's Fairfield County, Merritt 7. The new office complex offers the amenities necessary to support the current roster of employees along with the space options required to meet the firm's future expansion. The move was effective as of July 1, and the new address is 601 Merritt 7, Suite 5, Norwalk, CT 06851.