How to Use a Credit Union for Your Business Account
Credit unions provide a wide array of financial services to businesses, and they have several advantages over traditional banks. Whether you want to reinvest in your business, update technology and equipment, invest in your employees, or otherwise further develop the business, a credit union can likely help you. Here’s how to use a credit union’s business account services for the betterment of your business.
Take Advantage of Many Credit Union Services
Most importantly, credit unions are well-equipped to meet most business’ financial needs. They offer checking and savings business accounts, as well as a range of loan options. The available loans include SBA-backed small business loans, and funds in checking and savings accounts are insured up to $250,000 just as they would be with a bank. Unless your business is especially large and has particularly specialized needs, you’ll find that a local credit union’s product and services more than suit your business’ needs.
Secure Lower Interest Rates for Loans
Compared to banks, credit unions commonly offer slightly lower interest rates on the business loans that they provide. They’re able to offer lower interest rates because they’re local organizations and focus on serving members rather than investors. Even if the difference between a bank’s and credit union’s loan interest rate seems minimal, it can lead to substantial savings over the course of the loan. Your business will pay less in total interest over the course of the loan, and it’ll have a lower monthly payment. Should you want to, the lower monthly payment will enable your business to borrow more so that it can invest more in equipment, personnel, growth, or another area.
Avoid Checking Account Fees & Realize Higher Savings APRs
The converse of loan interest rates is also true. Credit unions tend to offer more favorable terms on the money that’s invested in their accounts. This may come in the form of no-fee checking accounts that don’t have minimum requirements, or it might be high-yield savings accounts that pay above-average annual percentage rates on investments. In either case, saving on fees and realizing higher rates on investments are both good for your business. You’ll be able to keep overhead costs lower, and any emergency fund you build up (which is something every business should have) will grow a little faster.
Receive a Higher Level of Service
Finally, credit unions often provide a higher level of service than banks are able to afford. Many credit unions have specialists who specifically serve business members, and you’ll likely deal with the same one or two people every time you consider a new financial product. As these people get to know your business, they’ll be able to lend personal insights tailored to your particular business and concerns.
Set Up Business Services with Clark County Credit Union
To learn more about what a credit union can do for your business, contact Clark County Credit Union at 702-228-2228. One of our specialists will be happy to discuss how we can serve your business.