Magnolia Financial added a commercial loan division, Magnolia Capital, to complement its core products: Accounts Receivable Financing, Asset-Based Lending and Purchase Order Financing programs.

The company also announced that Rick Hennecy will lead the new division. Hennecy brings 18-plus years of banking and financial expertise to his role as SVP of business development.

“Rick’s experience and passion for our efforts will be a valuable asset to the new operation,” Magnolia Financial CEO Gerald Smith said. “Magnolia Capital represents our ongoing commitment to provide flexible working capital solutions that best fit our clients’ individual needs. With Rick spearheading the new division, we have no doubt it will be successful to that end.”

In addition to his years in the banking industry, Hennecy gained extensive entrepreneurial experience owning and operating a chain of retail stores in the Upstate and North Carolina.

“I am excited to lead this new organization, which will expand Magnolia’s service to businesses seeking term debt from a non-traditional source,” states Rick Hennecy. “Magnolia Capital will provide loans to businesses that do not qualify for a bank debt due to short-term correctable issues. With our help, these companies can reenter the traditional banking environment.”

Founded in 1999, Magnolia Financial is an asset-based lender with offices in Spartanburg, Raleigh and Atlanta.