Mackinac Financial (MFNC) in Manistique, Mich., has launched an asset-based lending unit.
The $552 million-asset company announced the formation of wholly-owned subsidiary Mackinac Commercial Credit in a press release Friday. The new division provides working capital to small- and medium-sized companies through a variety of alternative financing methods.
Mackinac Commercial Credit opened for business in Birmingham, Mich., on Sept. 10. It headed by Don Barr, an industry veteran with 40 years of experience in traditional banking and asset-based lending.
Mackinac's new unit received a $3 million investment from its parent company. It secured a $25 million line of credit from Wells Fargo Capital Finance to fund its loan and purchased receivable portfolio, according to the release.
"We are pleased to have earned the confidence of Wells Fargo Commercial Finance unit, a recognized U.S. leader in providing financing to commercial finance companies," Chairman and Chief Executive Paul Tobias said in the release. "As we expand this line of business, we will be exploring our options for supplemental capitalization."