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Maxim Commercial Capital Doubled Fundings in Q3 2023

October 19, 2023
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LOS ANGELES, CALIF. (Oct. 17, 2023) – Maxim Commercial Capital (“Maxim”) announced robust demand across its diverse financing programs for the third quarter of 2023. The hard asset secured lender reported a 100% year-over-year increase in truck financings for the period. Furthermore, it experienced a surge in demand for second-lien mortgages to refinance Merchant Cash Advance (MCA) loans and to support working capital. Maxim is a national provider of loans and leases from $10,000 to $3 million collateralized by class 6 and 8 trucks, trailers, heavy equipment, and real estate.

“The current climate of healthy residential real estate valuations, coupled with low-cost first mortgages and conservative banking practices, makes our Real Estate and Structured Finance programs highly appealing,” noted Michael Kianmahd, Maxim’s Executive Vice President. “Many homeowners don’t realize they have liquidity in their homes that can be tapped to grow their businesses, often at significantly less expense than MCA loans.”

Notable fundings during the period include a $400,000, 5-year second-lien mortgage at a 60% combined loan-to-value (LTV) for an experienced optometrist with four business locations in Los Angeles. The funds were used to pay off MCA loans, reducing monthly debt service by $15,000, and for working capital. Maxim also funded aa $125,000 second-lien mortgage to an experienced construction project manager in Las Vegas at 58% combined LTV to fuel business growth and pay off an expensive MCA loan.

Maxim’s credit matrix featuring lower down payments for truck owner-operators, ranging from better credit to subprime borrowers, continued to prove popular among loan brokers and truck vendors in Q3 2023. Truck financings during the period included 75% purchase financing for an experienced owner-operator with a 607 FICO to buy a 2018 Peterbilt 579 with 399K miles for $58,695; 68% purchase financing for an owner-operator with a 593 FICO to buy a 2019 Peterbilt 579 with 547k miles for $62,250; and 71% financing for a start-up owner-operator with a 618 FICO to buy a 2020 Freightliner Cascadia with 465K miles for $51,275.

“Fortunately, the used truck market has softened in light of the current economic volatility “We are committed to helping hard-working truck drivers stay on the road, earning a living,” noted said Behzad Kianmahd, Maxim’s Chairman and CEO. “The current economic volatility has improved truck pricing while also causing some lenders to retract, creating an opportunity for Maxim to fill a void.”

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.

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Contact:
Michael Kianmahd
Executive Vice President
Maxim Commercial Capital
michael@maximcc.com
(213) 984-2727

Survey: Factoring Sector of Finance Industry Shows Resilience Despite Decreased Volume

October 18, 2023
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Secured Finance Network Releases Mid-Year Report

secured finance networkNEW YORK, NY, Oct. 16, 2023 ─ The factoring sector began 2023 on a positive note and has continued to show resilience in an uncertain economy, according to the MidYear Factoring Industry Survey, released by the Secured Finance Network (SFNet). The survey included the Factoring Confidence Index, which found that despite a lingering threat of recession, member organizations are optimistic about the demand for new business and portfolio performance. General business conditions and industry employment levels, meanwhile, were predicted to remain the same.

“The overall outlook for the U.S. economy has improved in recent months due to strong consumer spending and easing inflation,” the report said. “The odds of a ‘soft-landing’—a further easing of inflation without a recession—have increased somewhat, but recession risks remain.”

Factoring is the process by which a buyer—a non-bank lender or bank affiliate referred to as a “factor”—purchases the accounts receivable of a client, at a discount. Clients are typically companies involved in textiles, apparel, business services, shipping, transportation and other industries that want to improve cash flow, according to SFNet.

Factoring activity

This industry, like many others, continues to feel the pressures of a post-pandemic economy. Overall factoring volume in the first half of this year decreased by 13.5% compared to the same period in 2022, the report said. U.S. volume was down 13.3% and international volume fell by 23.7%. Apparel/textiles remained the top client industry for volume at 30.2% after holding a similar position in SFNet surveys in recent years.

“The number of factoring clients edged down by 0.3% from H1 2022 to H1 2023,” the report said, “with U.S. clients dropping by 0.4% and international clients increasing by 5.7% over the same period. Banks and brokers were the top two sources of client referrals, accounting for over half of all referrals during those periods.”

Regionally, there was little change year-over-year in factoring volume and clients, the report said, but the distribution of volume was notably different from the distribution of clients. The Northeast had the highest share of volume in the first half of this year (58%), but the Southeast had the highest share of clients (27%).

“Non-recourse factoring continued to comprise the vast majority of total volume (85.9%) while full recourse factoring comprised the majority of clients (81.8%),” the report said. “Notification factoring comprised a slight majority of volume (51.1%), with its share of volume declining steadily from H2 2021 (77.0%). Notification factoring still comprised the vast majority of clients (96.5%) and was relatively unchanged.”

More factoring survey highlights:

  • Average loan turnover saw a slight increase to 47.8 days in the first half of 2023 and average days sales outstanding also rose, to 50.7.
  • For portfolios, write-offs were up slightly from the same period in 2022 as a share of volume, from 0.04% to 0.11%. Provisions for loan loss accounted for 0.44% of volume.
  • Factoring revenues decreased by 26% from midyear 2022, with net interest revenue holding steady at 58%. The share of service fees, meanwhile, saw a slight increase.
  • Average return on assets rose 4.2% while average return on equity increased 15.2%, the report said. Survey respondents reported pre-tax income at 0.63% of volume in the first half of this year.
  • The number of employees in factoring grew from the previous two quarters, but not by much: 1.2%.

Details

Follow the link for more publicly available information on the MidYear Factoring Industry Survey. SFNet members have access to additional data and detailed reporting.

About Secured Finance Network

Founded in 1944, the Secured Finance Network (formerly Commercial Finance Association) is an international trade association connecting the interests of companies and professionals who deliver and enable secured financing to businesses. With more than 1,000 member organizations throughout the US, Europe, Canada and around the world, SFNet brings together the people, data, knowledge, tools and insights that put capital to work. For more information, please visit SFNet.com.

Media Contact:
Michele Ocejo, Director of Communications
Secured Finance Network
mocejo@sfnet.com, 551-999-5283

Fundfi Secures New Credit Facility

October 2, 2023
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efraim kandinov
Efraim Kandinov, CEO, Fundfi

Fundfi Merchant Funding LLC, a leading provider of Merchant Cash Advances (MCA), is proud to announce securing their newest credit facility to continue growing its funding portfolio.

The new line of credit, secured through a strategic partnership with Crown Partners LP, exemplifies Fundfi Merchant Funding’s unwavering commitment to supporting small and medium-sized businesses by providing them with accessible and flexible funding solutions.

This substantial financial injection arrives at an opportune moment for Fundfi Merchant Funding as it seeks to capitalize on a growing demand for alternative financing options among businesses facing challenges in securing traditional bank loans.

Efraim Kandinov, Co-Founder and CEO of Fundfi Merchant Funding LLC stated, “This line of credit not only bolsters our financial capabilities but also underscores our unwavering commitment to supporting businesses on their journey to success.

Natasha Dillon, Fundfi
Natasha Dillon, CFO, Fundfi

We understand the unique challenges entrepreneurs face, and this new funding empowers us to make a more profound impact in helping them thrive and achieve their dreams.”

Natasha Dillon, Co-Founder and CFO of Fundfi Merchant Funding LLC, commented, “This infusion represents a tremendous vote of confidence in our company and its mission. We are excited to leverage these funds to continue supporting businesses when they need it most and to innovate our offerings to better serve our clients.”

About Fundfi

Fundfi Merchant Funding LLC, headquartered in New York, is a leading provider of Merchant Cash Advances (MCA), offering tailored financing solutions to businesses across various industries selected.

Actum Processing brings Instant Credits, Powered by Real-Time Payments to Funders in the Cash Advance Industry

September 20, 2023
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Austin, Texas, September 20, 2023 – Actum Processing, a leading ACH payment provider in the lending space, is proud to introduce Instant Credits, a groundbreaking solution that is poised to transform the way Funders in the Cash Advance industry send money. With Instant Credits, clients can enjoy the convenience of depositing funds instantly, 24/7, 365 days a year.

Vinny Lipari, President and Co-Founder of Actum, emphasizes the paramount importance of speed in delivering working capital to merchants. Real-Time Payments, the backbone of Instant Credits, will provide Actum’s clients with a significant edge in the evolving industry landscape. Actum has forged a strategic partnership with one of the largest Financial Institutions in the country to bring this exclusive offering to the lending space. This collaboration ensures that Actum’s clients will have access to a secure and reliable platform for their processing needs.

Whether you are seeking to fund a deal, pay commissions, or deliver cash to your investors and syndicates, Real-Time Payments empowers you to do it instantly. Actum’s clients can leverage this service through various channels, including direct API integration, integrated SaaS platforms or Actum’s user-friendly Virtual Terminal.

“We are thrilled to introduce Real-Time Payments and Instant Credits to our valued clients,” says Vinny Lipari. “This innovative solution is a testament to our commitment to providing cutting-edge services that meet the evolving demands of the market.”

To learn more about Real-Time Payments and the full range of valuable services Actum brings to the market, contact Actum today.

Contact Information:
Email: sales@actumprocessing.com
Phone: (800) 975-5640

The LCF Group Acquires Key Strategic Assets from Reliant Funding and Sets Course for a Record-Breaking Year

September 18, 2023
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New Hyde Park, NY, September 18, 2023 – The LCF Group, the leading capital provider specializing in subprime merchants across all U.S. industries, announced the successful acquisition of select strategic assets and licensing rights for Reliant Funding, a foremost authority in prime funding.

“We’re excited to announce The LCF Group’s successful acquisition of key assets from Reliant. This strategic move not only enhances LCF’s portfolio but also empowers us to offer merchant funding through both ISO partners and directly under the LCF and Reliant brands. With this step, LCF solidifies its position as the leading provider of quick access to working capital for small to mid-size businesses,” shared Andy Parker, CEO of LCF. “We’re making significant progress in our integration, capturing synergies, and realizing the financial advantages of this acquisition. Our focus remains unwavering: to meet the growing funding needs of small businesses nationwide.”

While LCF has resumed funding under the Reliant brand in the direct business, ISOs should stay tuned as the company plans to roll out funding options through the wholesale side of the business with select ISO partners in the coming months.

For information on The LCF Group, visit www.thelcfgroup.com. Learn more about Reliant Funding at www.reliantfunding.com.

About The LCF Group

Founded in 2011 and headquartered in New York, The LCF Group is a seasoned MCA capital provider. The company specializes in funding small businesses across all states, industries, and risk factors. To date, LCF has funded more than 8,000 businesses and receives a glowing 4.7 / 5 star rating from more than 1,000 customers on Trustpilot.

NMEF Offers to Purchase IOU Financial

July 25, 2023
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(Ticker Symbol IOU on the TSX Venture Exchange)

JULY 25, 2023, NORWALK, CT – North Mill Equipment Finance LLC (“NMEF”), a leading independent commercial equipment lender located in Norwalk, Connecticut, announced today that the following letter was sent yesterday to the Special Committee of the Board of Directors of IOU Financial Inc. (“IOU”). NMEF’s proposed acquisition is at a 27% premium to the price per share agreed to by IOU and a group of inside shareholders representing 46.1% of the issued and outstanding shares of IOU announced on July 14, 2023. “We are offering to all IOU shareholders a far superior price to the value of the Company presented by the inside shareholders that was accepted by the Special Committee in a sweetheart deal for those insiders,” said David C. Lee, Chairman and CEO of NMEF. “Our offer is not subject to any financing contingency nor access to confidential information.”

About NMEF

NMEF originates and services small to mid-ticket equipment leases and loans, ranging from $15,000 to $2,000,000 in value. A broker-centric private lender, the company accepts A – C credit qualities and finances transactions for many asset categories including construction, transportation, vocational, medical, manufacturing, printing, franchise, renovation, janitorial and material handling equipment. NMEF is majority owned by an affiliate of InterVest Capital Partners. The company’s headquarters is in Norwalk, CT, with regional offices in Irvine, CA, Dover, NH, Voorhees NJ, and Murray, UT. For more information, visit www.nmef.com. One of NMEF’s controlled affiliates, BriteCap Financial LLC, is a leading non- bank lender providing small businesses with fast, convenient financing alternatives such as working capital loans since 2003 from offices in North Hollywood, CA and Las Vegas, NV. For more information, visit www.britecap.com.

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READ THE LETTER HERE

Alliance Funding Group Upsizes Corporate Note to $39 Million

July 25, 2023
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Tustin, CA – Alliance Funding Group (“AFG” or the “Company”), one of the largest privately-held equipment finance companies in the U.S., today announced the successful upsizing of its corporate notes to $39.0 million. The new issuance was assigned a BBB rating by a nationally recognized statistical ratings organization (NRSRO). Proceeds from this transaction will be used for working capital purposes and to finance growth, including potential future acquisition opportunities.

AFG is a market-leading vendor direct specialty finance company that provides small-ticket and middle-market equipment leasing, financing and working capital solutions to a broad range of businesses throughout the U.S. Since inception, the Company has funded more than $2.0 billion to over 25,000 businesses.

“We are grateful for the continued support from a core base of institutional investors that have demonstrated strong conviction in our growing platform,” said Brij Patel, founder and President of AFG. “As competitors tighten their credit boxes, we recognize an outstanding opportunity to pick up market share, both organically and through potential synergistic acquisitions.”

Brent Hall, Senior Vice President – Capital Markets, stated: “Following our successful securitization placed earlier in the year, this recent financing helps further fortify our balance sheet. We are experiencing significant demand from our customers and this additional capital will enable us to continue to meet their financial needs in a volatile economic environment.”

Brean Capital, LLC served as the Company’s exclusive financial advisor and sole placement agent in connection with the transaction.

About Alliance Funding Group

Alliance Funding Group was founded in 1998 and has grown to become one of the largest privately held equipment finance companies in the U.S. AFG provides leasing and financing solutions to a wide variety of businesses across a defined spectrum of credit types. AFG currently operates out of its headquarters in Tustin, California with offices in Los Angeles and Carlsbad, CA, Portsmouth, NH, Austin, TX, and Tacoma, WA. For more information, visit: www.afg.com.

Maxim Commercial Capital Expanded Business in Q2 2023

July 17, 2023
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Seasoned lender fills growing void in hard-asset based lending industry

LOS 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.

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Contact:
Michael Kianmahd
Maxim Commercial Capital
michael@maximcc.com
(213) 984-2727