5 Reasons to Take Your Business Banking to a Credit Union
Choosing the right financial institution for your business is an important decision. You need a financial partner that is going to help sustain and grow your business, and that is especially true of small businesses making their start. For well-established
businesses, it may be worth examining the relationship with your current financial institution to determine if you are getting the most out of their banking services. If that relationship has been with a bank, consider the benefit to your business
if you were to switch to a credit union.
Understanding the fundamental differences between banks and credit unions can help make clear which type of financial institution best suits your business’s needs.
Credit unions offer full-service business banking
Beware the false impression that credit unions offer fewer business banking services than banks. The reality is that today’s credit unions are well equipped to handle all of your business’s financial needs. Whether you are a new business or a well-established company, credit unions can provide for all of your lending, checking, investment and credit needs.
Credit unions are member-owned
While credit unions offer many of the same services as banks, the two kinds of financial institutions are fundamentally different. Banks are for-profit businesses that exist to make profits for their shareholders. A credit union is a not-for-profit financial cooperative, owned by its members, governed by a volunteer board of directors elected by the membership and staffed by financial service professionals. Members pool their savings, make loans to each other and have access to other financial services. Excess earnings that are not used to strengthen the credit union’s capital are returned to the members in a variety of ways: Higher yields on savings, lower rates on loans, better fees, improved services, investments in new technologies and support of local communities. Returning value to members is the credit union way.
Fees structured to benefit their members
Say goodbye to the annual credit card fees and monthly checking fees a typical bank may charge their business account holders. Credit unions are not-for-profit organizations, so there is less incentive for them to charge their members extra fees. Imagine the potential savings for a business owner who no longer has to account for transaction fees.
Accessibility is not exclusive to banks
Convenience has long been central to banks’ appeal. Not only do banks often have many branch locations spread across a wide service area, but brand name banks have frequently been at the forefront of online and mobile banking services. Today’s business owners need to be able to bank anytime, anywhere. Credit unions have closed the technology gap, and ease of access is no longer an obstacle for many of them. Credit union members can now transfer funds, pay bills, make remote deposits, check account activity and more.
Credit unions are relationship-focused and community-driven
Credit unions are built on a members-first philosophy. Member-driven organizations thrive by focusing on building relationships and long-term commitments. Because they likely have more local ties than a national brand, credit unions often have a greater focus on investing in their communities. Credit unions frequently offer sponsorships, donations and scholarships to benefit the local community, and demonstrate their support for local businesses by offering small business loans. There may even be a lower risk of being denied a loan because that decision is made locally, rather than having to be routed somewhere else in the country.
Please contact us if you are a business owner interested in banking with our credit union.