DORCHESTER, Mass.-Medical Area FCU is taking a novel approach as it enters a new market by opening a location solely dedicated to lending.
The Brookline-based institution was able to secure space on Adams Street, a major thoroughfare in the Boston neighborhood, and decided to quickly move in and create a location where members can secure much-needed loans. The Lending Center is open during normal business hours on weekdays and specializes in small business loans, mortgages, home equity lines of credit and auto loans.
"It's a great way to get our foot in the door in terms of making connections and relationships," said Sarita Ledani, VP of Business Development and Marketing. "A lot of people with good credit are finding it difficult to get small business loans and other loans with large institutions."
Small business lending will be of particular focus, as Ledani noted that many banks are steering clear of entrepreneurs who need loans or lines of credit in the $25,000 to $75,000 range to either start a new business or get equipment. That niche provides a "real sweet spot" for the $58-million institution, she added.
Last year MAFCU's loan portfolio grew from $39.5 million to $47 million, nearly a 20% increase, while maintaining below industry average delinquencies, Ledani noted. The credit union also works closely with members to help repair their credit through increased financial education efforts.
The lending-only facility is a first in the credit union's 58-year history. The toehold that the Lending Center provides could be followed up with a full service location in the near future, as the credit union hopes to open its third branch in an adjacent building in 2011. Ledani was also hopeful that the location, which expands MAFCU's reach into Boston's southern suburbs, would help pick up business from commuters, as well as individuals and businesses in nearby Milton. MAFCU boasted nearly 11,000 members and serves more than 120 affiliate groups.
