Small Business Corner

The Pros of Credit Union Small Business Banking

As a small business owner, you need capital – but you also need an affordable way to get it and the personal attention you deserve. A credit union business loan or line of credit can offer you all of these things.

Credit unions traditionally offer lower interest rates than banks. Banks charge the highest interest rates that the market will bear, whereas credit unions focus more on offering rates that are advantageous to their members.

Credit union transaction fees are often lower than bank fees. The same idea that applies to interest rates applies to fees as well. Credit unions are owned by members, which means it’s in the credit union’s best interest to offer affordable fees for their services.

A credit union may process your loan application more quickly than a bank would. As a rule, credit unions have fewer members than banks do customers, so that means they have fewer applications to process. A loan application may take months to get through a bank, and only a fraction of that time to be processed at a credit union.

Credit unions offer smaller loan amounts than banks. For many small business owners, a little capital can go a long way. Large banks, especially national banks, may focus their attention on offering large loans and business lines of credits to the big companies that need them. Smaller companies like yours may get lost in the shuffle. At Addition Financial, we offer business loans that are ideal for small and medium-sized businesses.

Credit unions offer more personal attention than banks. If you get a loan with a big national bank, the chances are good that you’ll rarely speak to your loan officer and may be a low priority for them in the event you need help. By contrast, credit union loan officers have fewer loans to administrate and more time for customers.

A complete line of business banking solutions. It is a common belief that credit unions cannot offer as many services and products as banks, while the reality is something else. These financial establishments offer a full suite of business facilities that consist of lending, investment, credit card, and checking. You can choose product options as per your needs so that you can benefit, whether it’s your new business, budding enterprise, or a well-established small company.

Easy access. People choose banks for the convenience of online banking services and advanced technology. They hesitate to join credit unions because of the belief that these institutions cannot provide that ease of online operation. However, in truth, even credit unions also offer a gamut of online and mobile banking facilities, including fund transfer, bill payments, deposits, account activity, and others.

Credit unions are often localized, offering their products and services to business owners who live or work in their local area. This leads many potential members to believe they can’t access their account when they travel. However, many credit unions, are part of a worldwide network which allows members access to over 75,000 no-surcharge ATMs worldwide. 

Credit unions offer resources that banks don’t. Many credit unions provide business resources and valuable information to their customers. These may include general business information and  small business planning and advisory services.

Your community is our community. A credit union is also more likely to understand a communities’ need for and potential success of a small business, as they themselves have deep roots in the community. Credit unions are all about keeping local dollars in the local economy. 

Another benefit of working with these local financial institutions is the lower risk of loan denial because decisions are taken locally. The application won't need to travel far for approval or rejection.

Access to capital, financial counselling and planning services, and lower-fee accounts is vital to millions of small businesses across the U.S. Credit unions understand this and are uniquely positioned to deliver the tailored finance solutions small businesses need.

Explore Additional Business Services from USSFCU:

Visa^® Credit Cards

MBS credit cards offer a low-rate and come with Visa-specific benefits like purchase security and extended protection, emergency assistance services, travel accident insurance, and more. Learn more...

Merchant Services

We’ve partnered with USB Payment Processing to offer a wide range of innovative products and credit card services to help your business prosper. With USB, you'll find some of the lowest rates and best service in the credit card processing industry. Learn more...

Business Advisory Services

Transitioning your business requires careful planning at every stage. We've teamed up with Fellows Financial Group to offer our business account holders access to professional business planning services. Connect with an advisor who can help you create a plan that’ll adapt as your business grows. Learn more...

This material is for informational purposes and does not necessarily represent the views of the presenting party or their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any federal tax penalty.