Why More Small Businesses Depend on Credit Unions for Commercial Loans

Small businesses need access to affordable credit to have the capital they need to expand their operations, pay their day to day bills, and cover unexpected operating expenses. As conventional banks leave a void that limits small businesses' access to commercial credit, credit unions are becoming an increasingly important provider of commercial loans and other business banking products. Here's what you need to know about the rising role of credit unions in commercial lending and the options available at CCCU.

The Role of Credit Unions as Commercial Lenders

In recent years, the role of traditional banks as small business lenders has decreased due to more stringent lending standards and economic uncertainty. Credit unions have been able to offset some of these lending declines to continue to serve the credit needs of small businesses. Since credit unions don't have to continually focus on meeting shareholder expectations regarding profit and growth, they're able to fund small business loans that banks may deem too risky or not profitable enough to fund. They can also handle small commercial loans that banks may not want to devote the resources to processing and funding.

Small businesses are less likely than large, established businesses to have built a strong credit history. Banks often require an established history of business credit to approve a commercial loan. This means small businesses, the very entities that need capital the most, have the hardest time securing a loan. The increase in credit unions as business lenders is helping to change this.

Commercial Loans at CCCU

CCCU offers an assortment of commercial loans to meet the needs of our business clients. Our unsecured revolving lines of credit are ideal for businesses that want to have capital available to use as needed for inventory, bills and other operating expenses.

Looking for capital to cover the costs associated with expanding your facilities? CCCU offers construction loans and owner-occupied loans. Some of the other commercial loans we fund include:

  • Equipment financing
  • Borrowing base certificates
  • Letters of credit

We can assist you with understanding the potential costs of your commercial loan and help you get preapproved before you start looking for your next business site. Contact us today at 702-228-2228 to learn more about our Clark County Credit Union small business loans available.