Why Choose a Credit Union for Small Business Banking
Small businesses are the backbone of the economy. They are responsible for creating jobs, generating income and driving innovation. While small businesses may not require the same financial support or resources as larger corporations, they still need access to banking services that can help their small business grow and thrive. This is where a credit union for small business comes in.
A credit union is a not-for-profit financial institution that is owned and controlled by its members. Similar to banks, they also offer a wide range of services, including checking and saving accounts, loans, and credit cards. Even though credit unions and traditional banks both offer banking services, they have surprisingly key differences that may work to your advantage. Here are some examples that set credit unions apart from traditional banks:
1. Strong focus on members
The not-for-profit status of credit unions makes them a good choice for small businesses to do their banking services. Rather than maximizing profits, credit unions focus on serving their members, meaning you will be financially supported in every way you can to help your business flourish.
2. Offer better interest rates
Since credit unions are not owned by shareholders, they are able to offer better interest rates on loans, higher interest rates on savings, and lower fees on other financial services than traditional banks. If you’re a newly established business, credit unions are more willing to work with small businesses that have less established credit histories.
3. Community involvement
One of the key philosophies of a credit union is community involvement. Credit unions are often deeply rooted in the communities they serve. They are committed to making a positive impact in their local communities by offering financial education classes to schools, holding donation drives, and supporting local businesses.
At CCCU, our credit union’s philanthropic committee, CCCU Cares, focuses on the key values of Caring, Community, Compassion, and Unity as our group supports the local communities in Southern Nevada.
As a small business owner, you should consider partnering with a financial institution with experience working with small businesses and offering the needed services. At CCCU, we’ve welcomed and supported many local businesses to ensure their financial needs are being met. Our commercial lending team has decades of experience and is ready to help optimize your business. Visit our Commercial Banking page to learn more or call us at 702-228-2228.