Do you want a small business loan for the progress and growth of your company? Then, you can opt for credit union business loans. A credit union is a nonprofit financial institution, which is controlled and owned by its members. For a small business loan, you can find some amazing deals at your local credit union.
You can connect with a credit union situated in your society for just a little savings account deposit. This way you can save money on different financial products, like mortgages, checking accounts, business loans, and credit cards.
We have jot down the 3 benefits of taking a small business loan from a credit union. These include:
Able and willing to lend money
Credit unions are more flexible, able and willing to lend money to small companies, and are fully occupied in the market, from an underwriting viewpoint. Research suggests that credit unions are increasing in their associate business loans, whereas the commercial banking sector is experiencing decline.
Figures record that a credit union has an approval rate of nearly 46 per cent for credit union business loans as compared to the marketplace average of about 40 per cent.
Additionally, credit unions focus more on their relationships with their members. For instance, a particular person is a member of a particular credit union for his or her whole life and he or she is establishing a business and the credit union has that track record and relationship with him or her, then it is willing to lend them money, give them credit union business loans, and take the risk with them.
Better rates and lower fees
As credit unions are nonprofit institutions, where the customers are the owners and not the stockholders, there is no requirement to pay the dividends. The owners are given back superior service, better rates, and lower fees both on lending as well as deposits. And, this is what a small business proprietor will notice, when they deal with a credit union.
Credit unions generally offer various financial products like credit cards, mortgages, auto loans, and home equity loans at low interest rates as compared to a bank. Recent data backs up this information. According to the data, the national standard interest rates on unsecured loans for a term loan of 36 months is 9.39 per cent at credit unions as compared to 10.41 per cent at all banks. On the other hand, credit cards have standard interest rates of 11.62 per cent at credit unions and 12.79 per cent at banks.
Local and streamlined loan approval
Although, credit unions stringently review their credit union business loans similar to other financial institutions, they also consider their association with the community as well as the business owners, whom they serve.
A person who is from inside the community will take it as a sound business decision, whereas a person from outside the community will take it as a risk. The communities served by credit unions are where its staff is also based, therefore all the decision making staff as well as the decisions are taken here. This considerably accelerates the whole process of credit unions.
And, therefore it is usual for a credit union member to state that their loan officer is just like their partner, who makes the entire lending process seamless as well as helps them to expand their plans, so that the member can concentrate on growing her or his business.
Thus, these are the 3 benefits of credit union business loans. If you take a business loan from a credit union, you can get money faster and that too at better rates and lower fees, along with local and streamlined loan approval.