Top Five Tips for Securing a Credit Union Business Loan
A business that secures a loan at a credit union can use the funds to help streamline its processes and help grow the company. A credit union business loan can be a smart choice for many reasons, mainly because not-for-profit credit unions can offer favorable interest rates and lower fees.
Additionally, credit unions are known for having personalized service and community focus, which means they are more willing to work with new or small businesses that may not meet the strict lending requirements of banks, including minimum loan amounts.
If you’re looking to get a credit union business loan, it is important to note that each credit union has its own lending policies and criteria. That’s why it’s necessary to do your research and compare their rates, terms, and qualifications before submitting a loan application.
Here are five tips for securing a credit union business loan:
1. Research the loan requirements
Researching the requirements gives you a head start on the process of being approved for a business loan. We know that credit scores are a crucial part of the application process but it’s not the only factor that lenders consider. They also look at your time in business, annual revenue, and possibly collateral if it’s needed for the loan. Talk to a credit union representative to determine their specific lending requirements.
2. Gather your financial documents
Once you’ve determined the requirements, you should have all your financial documents in order. In your application, you must attach your tax returns, bank statements, and any other relevant financial records for the last two to three years.
3. Write your business plan
Credit unions want to work with businesses that have a solid business plan. This shows that you have a clear vision of your business and a plan for how you will use the funds. In your business plan, don’t forget to include financial projections and other key details that will help increase your chances of securing the loan.
4. Build a relationship with the credit union
Since credit unions are mostly local, they are more willing to work with you even if you’re only starting to build your business credit score. If you’re not already a member, consider joining one before applying for a loan.
5. Apply for the loan
Once you’ve gathered your important documents, it’s time to submit your application. Loan officers at a credit union usually process a loan application within one to two weeks depending on how fast you’re able to provide the additional documents they request.
When it comes to securing a business loan for your next purchase or project, you deserve to work with a credit union that puts your needs first. At CCCU, the commercial team will work with you to ensure you secure a business loan at a great rate and terms. To get started with your business loan application, speak to a commercial team member at 702-228-2228 or visit www.CCCULV.org.