Maxim Commercial Capital Expanded Business in Q2 2023
July 17, 2023LOS ANGELES, CALIF. (July 17, 2023) – Maxim Commercial Capital (“Maxim”) reported nearly 300% more funded deals in the second quarter of 2023 than in the prior year’s period, despite broader economic headwinds and rising interest rates. To support this rapid growth, the hard-asset secured lender hired additional team members in credit and collections. Maxim provides loans and leases from $10,000 to $3 million secured by class 6 and 8 trucks, trailers, heavy equipment, and real estate for entrepreneurs nationwide.
“Fortunately for our customer base, used truck and heavy equipment prices have returned to more reasonable levels over the past few months,” noted Behzad Kianmahd, Maxim’s Chairman and CEO. “Concurrently, we expanded our credit matrix to span from better credits to subprime and start up borrowers and lowered down payment requirements. This combination is enabling more borrowers to acquire the heavy equipment and trucks they need to serve clients.”
Truck financings during Q2 2023 included 80% purchase financing for an owner-operator with a 651 FICO to buy his first truck, a 2019 Peterbilt 579 with 475K miles, for $65,362; 76% purchase financing for a start up owner-operator with a 763 FICO to buy a 2019 Peterbilt 579 with 362k miles for $76,054; and, 75% financing for an experienced owner-operator with a 541 FICO to buy a 2018 Freightliner Cascadia with 468K miles for $65,000.
Maxim’s Real Estate Financing program continues to prove popular among borrowers who own real estate and need working capital for their businesses or cash out financing to pay down expensive liabilities. Maxim’s solution provides up to 70% combined loan-to-value financing structured as 1st, 2nd and 3rd liens, allowing the borrower to continue to benefit from pre-existing, low-cost 1st mortgages.
Real estate secured financings during the quarter included $280,000 in working capital for a start up business secured by a 2nd lien on a leased single-family home in Venice, CA. The borrower is a successful entrepreneur with multiple income sources whose financing alternatives likely would have diluted shareholder equity. Maxim also funded a $250,000 term loan for a family-owned business secured by a 2nd lien on their personal residence. The funds were used to pay off expensive MCA loans, settle delinquent taxes, and provide additional working capital.
“Our doors are wide open for business, while many other specialty lenders are pulling back from this choppy market,” said Michael Kianmahd, Maxim’s Executive Vice President. “This is made possible by our dedicated, hard-working team and our deep expertise in providing critical financing to our customer segments.”
About Maxim Commercial Capital
Maxim Commercial Capital helps small and mid-sized business owners nationwide by providing loans and leases (“financing”) from $10,000 to $3 million secured by trucks, trailers, heavy equipment, and real estate. It funds equipment purchase financings and leases, working capital, and debt consolidations. Maxim’s more creative financing structures leverage equity in real estate and owned heavy equipment to facilitate growth and preserve customers’ cash. As a leading provider of transportation equipment financing, Maxim supports startup and experienced owner-operators and non-CDL small fleet owners by funding loans and leases for class 8 and class 6 trucks, trailers, and reefers. Learn more at www.maximcc.com or by calling 877-776-2946.
###
Contact:
Michael Kianmahd
Maxim Commercial Capital
michael@maximcc.com
(213) 984-2727
Sales, Tech, Funding, and the Law in California
July 7, 2023deBanked sat down with three individuals from across the spectrum of the small business finance world in Southern California.
With David Austin, an attorney and Managing Partner at Austin LLP, we discussed merchant cash advance law and the importance of legal counsel to run one’s business correctly.
With Trey Markel, VP Sales & Marketing at Centrex Software, we discussed corporate finance, AI, blockchain, tech, and more.
With Justin Thompson, Chief Revenue Officer at National Funding, we talked about what’s changed in sales and the state of selling.
They’re all on AltFinanceDaily TV or listen to them on Spotify!
And don’t forget to register for AltFinanceDaily CONNECT San Diego!
Federal Legislators Jump on Commercial Financing Disclosure Bandwagon, Renew Push to Give CFPB Authority Over Industry
June 16, 2023
Feel like there’s a lot of state-level disclosure going around lately? Well now some members of Congress believe another layer is needed at the federal level. In a bill titled the “Small Business Financing Disclosure Act of 2023,” the language looks awfully familiar. There’s a Double Dipping clause in it, for example, which was a term first seen in a New York State law.
The federal bill, which was introduced by US Senator Robert Menendez and Congresswoman Nydia M. Velázquez, seeks to place the small business finance industry under the authority of the Consumer Financial Protection Bureau (CFPB). As part of that, the Director (currently Rohit Chopra) would be responsible for devising all the rules and formulas, according to the bill. Furthermore, with regards to sales-based financing, the bill specifically states:
1. The provider must disclose an APR.
2. The estimated term of repayment and periodic payments based on projected sales volume must be disclosed.
“Small businesses are the lifeblood of the American economy,” said Congresswoman Velázquez. “But for too long, predatory lenders have taken advantage of businesses in need of capital by offering loans and similar products with unclear terms and exorbitant interest rates.”
Supporters of the bill, including Senator Sherrod Brown and Senator Ron Wyden, also stated that the bill is aimed at “predatory lenders.”
In Senator Menendez’s press statement for the bill, it cites Funding Circle, a small business lending company, as a supporter.
“We believe a free and fair market operates most efficiently when there is transparency in pricing, terms and conditions,” said Ryan Metcalf, Head of U.S. Public Affairs at Funding Circle U.S. When a small business has all of the necessary information up front including the annual percentage rate (APR), they can comparison shop and make informed decisions that are best for their business. Funding Circle supports one national uniform small business financing disclosure law because it is in the best interests of small businesses and interstate commerce.”
The push for a small business financing bill is not new. A similar bill introduced by Velázquez last year did not move forward, nor did the one from 2021, nor the one from 2019. The difference is that previous versions focused on Confessions of Judgment and fairness in small business lending. The latest version takes on the air of disclosure while attempting to subjugate the whole industry to CFPB regulatory authority.
Shopify Capital’s Funding Volume Continues to Surge
May 6, 2023Shopify’s business lending and merchant cash advance division originated a whopping $477M in the first quarter of 2023. That’s up substantially from the $346.7M produced in the first quarter last year. Despite the continuous strong increase, Shopify Capital was not mentioned or even asked about during the company’s quarterly earnings call.
Shopify is a huge e-commerce business. The company generated $1.5B in revenue in Q1 and generated a net income of $68M.
Square Loans Originates $1.1B in Funding in Q1
May 5, 2023
Block is not slowing down its small business lending division. Square Loans originated $1.1B across 113,000 loans in the first quarter of 2023, keeping it on pace to continue remaining the largest small business lender that AltFinanceDaily publishes data on. The company said that loss rates remained consistent with historical ranges and that strong revenue and gross profit were achieved.
Lending Valley is Now Offering Funding Up to $5 Million
May 2, 2023
Lending Valley, based in New York City, is proud to announce that we are expanding funding options for funding up to $5 million. In the years following the global pandemic, Lending Valley helped many small businesses stay afloat, giving them the capital necessary to fund payroll, purchase materials, and keep the lights on even when patronage was at an all-time low. Now, Lending Valley will offer even larger funding to small and mid-sized businesses to keep them thriving.
Since its conception, Lending Valley has offered a wide range of business funding targeted toward supporting small businesses, including the following options:
- Unsecured business funding – No collateral needed. The business owner’s ability to repay the funding is the only thing securing the funding.
- Funding for entrepreneurs with bad credit – Unfortunately, going out on a limb for business ventures can often lead to bad credit for entrepreneurs. Traditional funding won’t consider these merchants, but Lending Valley will.
- Emergency business funding – Any emergency, personal or business, can derail even the best business plan. Short-term emergency funding can prevent long-term damage.
Businesses that have benefited from Lending Valley’s services vary widely, from the film industry to convenience stores and gas stations, cannabis farms and dairy farms, to dental practices and more. Lending Valley is a different type of funder, providing custom tailored funding options. Unlike traditional funding that can take weeks to approve and fund, Lending Valley deposits cash into the business’s account within 24 hours in most cases!
About Lending Valley
Lending Valley is a FinTech company that has already funded a lot of small businesses of all types across the U.S. For all inquiries, email Clark@lendingvalley.com
WBL Secures Anchor Institutional Financing and Resumes Full Operations and Funding
April 24, 2023
World Business Lenders (WBL) is resuming funding this week and relaunching originations through its Traditional, Digital API, and ISO Express channels, following a financing arrangement announced today by WBL CEO Doug Naidus.
“I am excited to welcome our new financing partner, not only enabling WBL to resume loan origination and funding, but affording access to more lending capacity than ever before,” said Naidus. “We are eager to return to market and launch our new business model.”
Initially, WBL will prioritize funding the customers who have remained in its pipeline since December 2022 when the company temporarily paused funding. WBL will begin accepting new loan submissions from its ISO partners, with respect to which additional detail will be provided over the coming days. In parallel with accepting new submissions, WBL will roll out a full-service Digital API business model and a self-service ISO Express business model, for certain qualified ISOs. At the helm of the new business model launch is John Milligan, WBL’s Chief Operating Officer, who now heads loan production.
“The API model will enable larger ISOs to leverage a digital integration that will automatically submit merchant applications straight to WBL. The ISO Express model empowers ISOs with the ability to generate offers for their merchants directly online. Both of these digital offerings are high-growth opportunities that will maximize the earning potential of our ISO partners through a combination of speed and simplicity.” said Milligan.
To learn more about how your business can maximize profits by partnering with WBL and leveraging its new API business model, please reach out to John Milligan’s team directly at isorelations@wbl.com. Also, be sure to inquire about meeting times with the WBL team at the upcoming Broker Fair on May 8th, of which WBL is pleased to be a sponsor.
Why SellersFunding is Now SellersFi
March 28, 2023
The financial platform dedicated to servicing e-commerce companies is now going by the name, SellersFi. Diversifying the brand beyond their funding capabilities, the rebranding is to bridge the gap between working capital and payment solutions.
Onward with the name change, starting in April they’ll be offering insurance and improving the capabilities of their digital wallet. And in Q3 this year, they’ll be launching FDIC insured business checking accounts for their clients, as well as credit cards. SellersFi will also continue to fund from as low as $25,000 to $10 million, to be the go-to platform for all their customers’ financial needs.
“…working capital and risk management is in our DNA, it’s the core of our business, and we will always be like that,” said Ricardo Pero, CEO at SellersFi. “But that doesn’t mean that we will turn our backs to opportunities to serve our clients in a more efficient way than what they have these days in other segments of the market.”
Clients already can channel their marketplace payouts digitally, so the idea is to offer an under-one-roof, all-in-one solution. They have also added on a product called Invoice Flex where their clients can choose to pay between 3 to 12 installments on their invoice.
“Every time our customers demand solutions and improvements in our platform, we hear them,” said Pero.
