Frequently Asked Questions

FAQs

Q: Who is Presidential Financial?

A:

Established in 1981, Presidential Financial provides customized and flexible financing solutions to growing businesses throughout the United States.  Not only do we have more than three decades of experience in helping growing businesses; we also have more than thirty years' worth of success stories.  You can see a sampling of those success stories here.

A lot can happen in thirty years.  We have navigated the ups and downs of multiple economic cycles, managed changes as industries come and go, and have partnered with our clients all along the way, helping them to achieve success throughout all of the seasons that they face.

Our company has seen its share of season changes along the way, too, as we have grown and expanded throughout the country.  From humble beginnings in Atlanta, Georgia, our company has grown over the years throughout the Southeast, across the eastern seaboard, then onward to serving clients nationwide.

In early 2013, Presidential Financial was acquired by MidFirst Bank, one of the nation's largest privately held banks.  MidFirst Bank is headquartered in Oklahoma City and serves more than 600,000 customers nationwide.  Learn more about MidFirst Bank.  

The Best of Both Worlds

What makes Presidential unique is that we combine the best of asset-based lending with the best of traditional banking.  Presidential has a significant capital base, diverse product offerings, and a strong commitment to the growth capital needs of the entrepreneur.  Presidential is one of the strongest and most versatile lenders in the markets that we serve, allowing us to fully service our clients' financing and banking needs over all the seasons of their life cycle.

Presidential Financial focuses on growing businesses with strong management teams and offers credit facilities which start at $1,000,000 and reach to $10,000,000 or higher, along with a host of other financing products and services.  Learn more about Presidential's offerings.

Q: What size lines of credit does Presidential offer?

A:

Presidential serves the needs of growing companies that have revenues of $10 million to $100 million or more.  Our credit facilities start at $1 million and reach to $20 million or higher.

Q: How does the lockbox work, and why do my customers send payments to you instead of to my company?

A:

The primary collateral for an asset-based facility is accounts receivable.  Because of our expertise in understanding and valuing accounts receivable, we are usually able to provide greater funding capacity as compared to other lending sources.  This also means that we take on a higher level of risk.  One of the ways we manage this risk is to process all payments through our lockbox service.  However, our lockbox service is a benefit to you and is generally unobtrusive to your customer.  Your customers continue to write checks to your company.  Only the mailing address (or electronic payment address) is different, similar to the way many credit card companies have payment locations throughout the United States.  We image the envelope, and everything inside of it, in order to provide you a web-based image of all processed payments.  This makes bookkeeping entries easy, and you no longer have to make daily trips to the bank.

Q: Is asset-based lending more expensive than bank financing?

A:

Presidential is very competitive with the many forms of financing that are available to the companies we serve.  Generally, asset-based lending is somewhat more expensive than traditional bank financing, but there are reasons for this.  An asset-based lender typically provides a greater level of capital than traditional lending sources, and therefore delivers greater value.  In order to deliver this, collateral monitoring is required and is included in our fee structure.

Q: Does Presidential offer factoring?

A:

No.  We provide working capital financing in the form of asset-based lending, term financing, and SBA financing.

Q: How does Presidential evaluate and monitor my collateral?

A:

You provide accounts receivable (and inventory, in some cases) information to us, typically on a weekly basis.  This usually consists of an accounts receivable aging and can be submitted electronically to us.  Our loan system calculates the borrowing base and your available amount to borrow is updated and available to you each day.  Depending on the type of credit facility, there may be other reporting requests.  Receiving this updated information from you allows us to constantly update your borrowing base so that you have the maximum amount available to you.

Q: My company lost money last year. Would you still consider offering a line-of-credit to my company?

A:

Profitability is preferred, but it is not a requirement.  We understand that sometimes market or industry conditions change, and that sometimes, even a bad decision can cause financial difficulties.  If we can understand the reasons for the loss, and you can demonstrate the ability to return to profitability, we will consider offering a line of credit.

Q: Do you provide financing for start-up companies?

A:

We do not have a time-in-business requirement.  However, our ability to offer a line of credit to a start-up company is subject to the minimum line size requirements, the availability and eligibility of collateral, and our due diligence process.

Q: Do you provide financing against healthcare receivables (from commercial insurance companies, Medicare and Medicaid)?

A:

Yes.  We do have the ability to provide financing to healthcare providers, although the minimum line size requirement is $3 million for healthcare deals.  We also provide financing for other types of businesses within the healthcare industry, such as medical staffing firms, healthcare technology companies, consulting and billing companies, and other businesses that serve the healthcare industry.  

Q: Does Presidential offer long-term loans against fixed assets such as equipment or real estate?

A:

Yes, we do have the ability to offer term financing to our clients in conjunction with a working capital line of credit.