Hennessey Capital is expanding the amount of money it's making available to finance small businesses by adding a Factor Finance program.
Factor financing is a transaction where a business sells its invoices at a discount for cash. It's different than a traditional bank loan because it focuses on the value of accounts receivable instead of credit worthiness and it involves the purchase of a financial asset. In this case, Hennessey Capital will provide a line of credit to another company that then provides factor financing.
"It's basically a lender-to-lender program where we provide a line of credit to other factoring companies," says Mike Semanco, president of
Hennessey Capital.
The Huntington Woods-based lender has been pretty busy with its traditional loan business so far this year. It has added 15 new clients over the last six months and is on track to make more capital available to other businesses. "I think all of them are Michigan-based companies," Semanco says.
The 9-year-old firm has grown to 12 employees and an intern. It plans to hire additional sales people later this year.
Source: Mike Semanco, president of Hennessey CapitalWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at
SEMichiganStartup.com.
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