Regional Management Corp. (NYSE: RM)

Regional Management Corp., often referred to as Regional Finance, operates as a diversified consumer finance company in the United States. The company's main business activities involve providing installment loan products, primarily to customers with limited access to credit from traditional lenders. Regional Finance operates in 19 states, serving a wide customer base of over 538,400 active accounts.

The company generates revenue through the sale of small and large installment loans, which range from $500 to $2,500 and $2,501 to $25,000 respectively. These loans are secured by non-essential household goods and/or vehicles, and are structured on a fixed-rate, fixed-term basis with fully amortizing, equal monthly installment payments. In addition, the company also sells optional payment and collateral protection insurance products.

Regional Finance's competitive advantage lies in its flexible loan products, which are competitively priced and designed to meet the varied financial needs of a broad range of consumers. The company's frequent-contact, relationship-driven lending model provides greater insight into potential payment difficulties, reduces credit risk, and allows it to assess the borrowing needs of its customers effectively. Furthermore, the company's ability to report customer payment performance to credit bureaus provides customers with the opportunity to improve their credit profile by establishing a responsible payment history with the company.

The company's customers are typically subprime, non-prime, or near-prime consumers who do not qualify for prime financing from banks, thrifts, credit card providers, and other lenders. Regional Finance's products are designed to serve the financial needs of these customers, who often have limited access to credit and may be more likely to default on loans.

Regional Finance's management team has over 30 years of experience in consumer financial services, and the company has a strong track record of growth and profitability. The company has grown its total finance receivables by 86.2% over the past five years and has increased its revenue by 79.8% over the same period.

The company's strategies for growth and profitability include expanding its geographic presence, leveraging direct mail marketing, improving its digital capabilities, and enhancing its products, channels, and services. The company plans to continue investing in its branch network, digital marketing, and credit and collections functions to drive growth and improve profitability.

Regional Finance's brand names and/or trade names of its products and services include its small and large installment loans, as well as its optional payment and collateral protection insurance products. The company's primary focus is on providing accessible and flexible loan products to its target customer base, making it a reliable option for consumers with limited access to credit from traditional lenders.