4 Benefits of Engaging a Credit Union’s Small Business Services
Building a thriving small business today requires a bit of research depending on the industry you’re working in, the products or services you sell, and the audience you’re trying to appeal to, online or off. If you’re just getting started with a small business, and you’re interested in seeking financing or flexible loan options, you may want to turn to a credit union. Understanding the benefits of engaging a credit union’s small business services can go a long way when you want to ensure you’re making informed decisions for your own organization.
1. Lower Fees
Surprisingly, you’ll likely encounter lower fees and, in many cases, even better rates when you choose to engage with a credit union’s small business services. Not only will you likely find the service to be more personable, but you’ll enjoy the benefits such as lower fees and better rates than going with a larger organization or financial institution. Some of the highest-performing credit units with under $250 million in assets ultimately proved to have the same ROA as a peer group of $5 billion in asset credit units in 2021.
2. Flexibility With Loan Options
In most cases, it’s estimated that only 48% of all small businesses have their financing needs met. This is especially true when someone is just getting started for the first time or does not have experience in a particular industry they’re entering. Finding the right loan and/or financing option is vital when you’re getting started with a new business, regardless of the type of venture you’re interested in forming and building.
Approaching a regional local credit union that offers services for small businesses is a way for you to gain access to flexible lending options, even if you have little to no history in business or in the finance sector in a professional capacity. If you’re new to applying for loans, it’s also advisable to research loan types and the various amounts of funding you may qualify for based on your credit history and the assets you own to your name. The better your credit score and history, the easier it’ll be for you to find funding, regardless of where you choose to do so when selecting your preferred community credit union.
3. Additional Personal Services
Working with a credit unit is also optimal if you’re struggling with financial security or seeking alternative options and solutions, such as filing for bankruptcy. In most cases, filing for Chapter 11 bankruptcy is one way for businesses to reorganize their debts while rebuilding their business from the ground up, according to U.S. Courts. If you’re struggling financially, you may have the ability to work with the professionals at a local credit union to begin the process of filing Chapter 11 bankruptcy when the time comes.
4. Community-Centric
If you’re interested in giving back and working with those in your local area, you’ll want to work with credit unions over larger financial institutions and conglomerates. Opting to work with a small credit union is not only a way for you to connect with locals, but also with local investors in your community. The more connected you are in the community, the easier you’ll find it to seek support when necessary.
Taking the time to visit a credit union to inquire about your options when it comes to financing your small business is always recommended, especially when you’re new to operating a business entity of your own. Working with those at a local credit union is not only a way for you to take advantage of decreased rates and lowered fees, but it’ll allow you to do so with personalized customer service to boot. If you’re interested in making connections with local credit unions and providers as you build your businesses and portfolios, you’ll want to do so by finding a local community credit union you can trust.