Why Small Businesses Should Use Credit Unions

Owning a small business is a labor of love. It’s built on a vision, driven by passion, and sustained through dedication. Every day, small business owners make hundreds, if not thousands, of decisions to help move their business forward.

As with all things in life, some decisions are more straightforward than others. One thing that should be an easy decision? Choosing to partner with a credit union for your business financial needs! We’ve outlined a few reasons why choosing credit unions for business banking needs is a better bet than banks.

Why Use a Credit Union for Business Banking Needs

• Lending decisions are made locally at credit unions. All credit unions are member-owned. For a credit union with a community-based field of membership, member-owners are people who live within a specific geography and have a heightened interest in what happens to the local businesses that make a region thrive. This ownership model creates a unique opportunity for credit unions to make lending decisions that factor in more than just numbers.

• Credit unions are not-for-profit. Unlike their bank counterparts, lending decisions aren’t influenced by profit or expected shareholder returns. Credit unions operate as not-for-profit financial cooperatives. When credit unions make profit, they reinvest the money in ways that directly benefit their members: lower rates, new services, better technology, scholarships, community involvement, etc. This structure allows credit unions to support not just the small business itself, but the community which it’s a part of.

• Credit unions develop personal relationships, which means quality customer service. A credit union’s business banking team prioritizes the overall success of your business, not the number of accounts you have or their monetary value. When choosing a credit union for business banking needs, you’re partnering with a local team of experts who are well-versed in the trends and forecasts for your specific geographic region. They’ll seek to understand how your business works and what your long-term goals are before recommending specific products and services. Through personal connection, you’ll receive a tailor-made financial solution that is aligned with your business objectives.

• Credit unions offer better rates. Credit unions typically offer lower interest rates on business loans, lines of credit, and credit cards than their bank counterparts. Over the life of the loan, lower rates decrease your overall cost of borrowing money to fund business endeavors. And credit unions can offer increased savings rates, too. These lead to increased profits while still having access to the necessary capital required to start, maintain, and/or grow a business.

• Credit unions offer lower fees. In addition to offering better rates for borrowing, credit unions usually waive or charge lower fees for the everyday resources required to successfully manage a business’s finances. When you pay less for standard services like bill pay, online banking, ATM access, checking and savings accounts, and payment processing, your overall profit margin increases. Credit unions also typically have lower minimum balance requirements, which makes it easier to access your money when you need it.

• Credit unions are committed to financial literacy. Credit unions, like Peak Credit Union, offer free resources and courses to make financial education available for all. Most business owners agree that owning a business requires wearing several different hats, usually at the same time. Credit unions value sharing knowledge, whether you lean on the credit union’s trusted advisors or feel empowered to learn more about finances for yourself.

• Credit unions are a one-stop shop for business financial needs. Most credit unions offer a full suite of financial services that are specifically designed to support business operations. From checking and savings accounts to commercial real estate and business auto loans to payment processing and POS systems, entrepreneurs can holistically manage their business’s complete financial picture.

• Your business deposits are federally insured at most credit unions. Check with your preferred credit union to verify they are backed by the National Credit Union Association (NCUA). The NCUA governs federal credit unions and offers members specific protection of their financial assets. When a credit union belongs to the NCUA like Peak does, each member’s deposits are federally insured up to $250,000 – the same level of security offered by banks insured by the Federal Deposit Insurance Corporation (FDIC).

Final Thoughts

Credit unions are built on the foundation of people helping people. This philosophy translates into a strong desire to better the lives of their members and communities, making credit unions a perfect match for small business owners who can take advantage of relationship-based local service, lower rates and fees, and a full complement of business banking products to propel their business forward. They also provide a similar level of security as banks, meaning your hard-earned money is safe when deposited in a business checking or savings account at a credit union.

Partnering with Peak

Regardless of the stage your business is in — starting, growing, or thriving — Peak Credit Union offers the financial infrastructure needed to help you reach your entrepreneurial goals. We can help you with an array of needs, whether you need to establish a business checking account, get a business vehicle or commercial real estate loan, or set up payment processing to pay employees and vendors automatically through ACH transfers.

Simplify and streamline how you manage your business finances through Peak’s full range of business services, all of which are specifically designed to support the unique needs of small businesses in Washington and Oregon. Peak is also insured by the NCUA. Peak’s team of dedicated business banking professionals are focused on understanding your current and future goals for your company. We’re happy to chat with you about your individual needs and explore how we can support you. Feel free to call us at (800) 258-3115 or use our website to schedule an appointment at your nearest branch.