Hard-asset based lender helped borrowers with additional collateral preserve cash
LOS ANGELES, CALIF. (July 18, 2022) – Maxim Commercial Capital (“Maxim”) provided creative financing solutions for small businesses across the U.S. during the second quarter of 2022. Fundings ranged in size from $20,000 for an owner operator to purchase a new rig to $2.0 million for a residential care company to purchase an additional facility to grow its business.
“This year’s low inventories and skyrocketing prices for heavy equipment and trucks have made it difficult for our customers to buy equipment without depleting cash on hand,” noted Michael Kianmahd, Executive Vice President. “Fortunately, many borrowers are enjoying substantial increases in real estate equity, which we leverage up to 70% LTV to reduce or eliminate down payments on equipment and real estate purchases, to refinance short term debt and for working capital.”
Creatively structured transactions involving additional collateral during the period included 100% purchase financing for a newer contractor with challenged credit to buy a 2009 CAT 289C Skid Loader, utilizing an owned 2015 Kubota KS957 as additional collateral. A repeat customer expanded her residential care business by purchasing a $3.2 million home in Malibu, Calif. with a $2.0 million loan from Maxim secured by first liens on the new home and an owned office building and second liens on two other residential care homes.
Based on applications submitted by owner operators and non-CDL owners of class 8 trucks during Q2 2022, affordability is improving. “We are starting to see inflated truck values slowly decline,” said Ryan Selway, Director of Vendor Relations. “This trend is encouraging as many drivers simply can’t afford to stay on the road if they have to buy a new rig at the inflated prices.”
Recently funded trucks include a 2015 Kenworth T680 purchased for $89,939 with a two-year warranty by a non-CDL owner who had been turned down by prime lenders; a 2016 International ProStar purchased for $67,437 by a start-up owner-operator with five years CDL; and, a 2018 Kenworth T680 purchased for $85,213 with a two year warranty by a start-up owner-operator with 10 years CDL.
Maxim is expanding its team in Los Angeles, Calif. Open positions can be found on the Careers page on Maxim’s website, www.maximcc.com.
About Maxim Commercial Capital
Maxim Commercial Capital helps small and mid-sized business owners seize opportunity by providing financing in amounts from $10,000 to $3,000,000 secured by heavy equipment and real estate. Maxim facilitates equipment and real estate purchases, provides working capital, and refinances debt for companies across all industries located nationwide. As a leading provider of transportation equipment finance, Maxim funds up to 75% of the acquisition cost of class 8 and class 6 trucks, trailers and reefers for owner-operators and small businesses. Learn more at www.maximcc.com or by calling 877-776-2946.
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