Maxim Commercial Capital Announces Increased Funding Activity in Q1/22
Maxim Commercial Capital reported a record level of delinquencies in the first quarter of 2022, as well as an increase in financing for better credit and demand for cash financing secured by real estate and equipment.
“As a private company, we have the luxury of pivoting our business strategy in real time based on market conditions,” said Michael Kianmahd, executive vice president of Maxim Commercial Capital. “This has benefited us during the pandemic and continues to serve us and our borrowers in today’s volatile global economic conditions. We continue to invest in our operating infrastructure and are looking to fill a few key positions.”
Maxim Commercial Capital onboarded 40 new funding broker relationships during Q1/22. Additionally, the company’s team educated finance brokers on ways to grow their business through webinars and a recently published byline article from the American Association of Commercial Finance Brokers.
Maxim Commercial Capital cash financings funded in the first quarter included a $340,000 loan to an environmental consulting firm in New Jersey, secured by first liens on the principal residence of the owners of the firm. , a rental property purchased with the financing and business furniture, fixtures and equipment . Additionally, a Chicago general contractor and real estate investor struggling with customer collection issues borrowed $218,000 from Maxim Commercial Capital, secured by a first lien on an investment property and second liens on two residential income properties. The contractor used the funds to refinance a merchant cash advance, complete renovations to an investment property, improve rental properties and update a mortgage.
With record prices for Class 8 trucks, Maxim Commercial Capital eased credit standards for certain classes of customers in the first quarter. Representative truck purchase transactions during the quarter included a 2019 Peterbilt 579 purchased for $115,692 by a two-truck non-CDL owner who has been in business for two years; a low-mileage 2016 Kenworth T800 bought for $107,283 by a start-up owner-operator with a FICO score of 628 and solid bank statements; and a $108,000 2018 Peterbilt 579 replacement truck for an owner-operator with a FICO score of 766.
“Thanks to our diligent team, we have exceeded our expectations during the pandemic and are reporting strong profitability and record losses,” said Behzad Kianmahd, Chairman and CEO of Maxim Commercial Capital. “We are well prepared to weather the lingering global economic crises, but hope for a return to peace in Europe and beyond.”