Magazine article American Banker

The Money Store Shifts Focus to Centralization

Magazine article American Banker

The Money Store Shifts Focus to Centralization

Article excerpt

The last time the name of any lender other than The Money Store Investment Corp. ranked first among lenders using the Small Business Administration's 7(a) loan guarantee program was in 1982.

In the nearly 13 years since the Sacramento, Calif.-based SBA lender first achieved the No. 1 ranking, it has developed a nationwide system of 65 offices. During the fiscal year ended Sept. 30, the company posted a 39.1% rise in new SBA loan volume, to $470.8 million. That's more than four times the volume of its nearest competitor, Heller First Capital Corp.

This nationwide network was built on a strong local presence that included underwriting and document preparation functions in 24 of its offices to accommodate the local SBA offices.

"It was our intention to work as compatibly as we could with the SBA offices during those years," said Larry Wodarski, president of the company's SBA division.

But like other financial institutions these days, The Money Store has had to change. On May 11, the company announced it was centralizing its SBA

loan underwriting and document preparation operations in one facility in Sacramento.

American Banker recently interviewed Mr. Wodarski about the reasons for this change in strategy and how he expects the company will benefit.

Q.: What brought about this change of strategy?

WODARSKI: Over the past couple of years, as we developed a lot of expertise in various regions, we were able to set up our marketing a little more efficiently. We did this by having our business development officers cultivate new territories and using our underwriting and credit expertise located in some regional offices. This is really just pulling it back one more step and having them derive their services from a more centralized base here in Sacramento.

Q.: In what ways do you see this move helping the company?

WODARSKI: Very clearly, this will be a much more manageable process in terms of implementation of our own policies and procedures. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.