4 Ways A Credit Union Can Help Start Your Business
Posted on: 8 April 2019
Are you planning to start a small business? As an entrepreneur, you will face many challenges. One of the first — and among the most difficult — is securing funding to get started. Entrepreneurs spend a lot of time and energy trying to do this, but you may be able to solve many of your financial needs at your local credit union. How so? Here are 4 ways a credit union can help:
Local Relationships
Credit unions were designed as a more local and cooperative alternative to big traditional banks. They generally have more of a focus on partnering with the community — especially if they are specific to your industry. You may be able to leverage this local focus and an established personal banking relationship when seeking funding for a business opportunity. Instead of working with distant and impersonal loan departments, you usually deal with local employees and on-site departments.
Credit Cards
Many new business owners fund a lot of their initial startup costs on credit cards. However, you can't afford to pay high rates, and you don't need to accumulate perks that won't further your business goals. Talk to your credit union about their credit union credit card services and rate options. Most of the time they offer credit cards with lower rates than many other companies and banks. If possible, look for a cash-back offer so you can put money back into your business.
Personal Loans
Another popular source of startup financing is taking out a personal loan as the owner. When you need more money than a simple credit card offers or want to secure an even lower rate, you may be able to get a personal loan from your established credit union. Because of their cooperative nature, these institutions may be more willing to lend money and offer better terms.
Share Accounts
You'll need a business bank account, of course. Avoid overspending on it at a regular bank -- many credit unions offer free or low-cost business checking and savings accounts if you have personal accounts with them. That generally also means you'll get access to online banking services, quick deposit options, wire transfers, and ACH services.
Many people wouldn't think about their credit union as their first and best source of small business funding. However, you may find that these financial businesses are eager to help you solve financing challenges and can provide a variety of ways to make it easier than ever to start your dream business.
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