Maxim Commercial Capital ramps up used equipment financing
Q2 transactions included $36K loan for truck with 574,000 miles
Maxim Commercial Capital reported strong results in the second quarter as financing volume picked up for used equipment despite market volatility and economic uncertainty.
The Los Angeles-based lender, which provides loans and leases from $10,000 to $3 million collateralized by trucks, construction equipment and agriculture equipment, remained committed to supporting underserved small and mid-sized businesses, according to a Maxim Commercial release today.
During the quarter, over-the-road truck dealers and buyers grappled with high prices for low-mileage vehicles and limited funding sources for start-ups and subprime borrowers. Maxim reported several transactions with B- to D-rated owner-operators in Q2, including:
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A $36,000 loan for a 2019 Freightliner Cascadia with 574,000 miles and 27% down from a borrower with a 669 credit score and limited credit history;
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A $60,000 loan for a 2021 Peterbilt 579 with 397,000 miles and 30% down from a start-up driver with limited credit history; and
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A $49,000 loan for a 2022 Kenworth T680 with 498,000 miles and 29% down from a subprime buyer with a 580 credit score.
Maxim also saw continued demand for its structured finance program, which allows borrowers to pledge owned homes or equipment to secure funding, according to the release. One example was a 20-year-old New York waste management company that received 100% financing for a $200,000 2022 Isuzu FTR Diamond trash bin cleaning truck. The loan was backed by both the equipment and the owners’ home after traditional lenders declined the deal due to recent negative cash flow.
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