5 Reasons Credit Unions Are a Small Business Owner's Best Friend

5 Reasons Credit Unions Are a Small Business Owner's Best Friend

Opening a small business can be a fulfilling, rewarding opportunity. But the sad reality is that more than 80 percent of small businesses do not make it past the first year. One of the reasons that these small businesses fail is because they do not have a reliable revenue stream.

One way to ensure your small business is producing a profit is by decreasing your expenses. For a small business owner, switching to a credit union can make a big difference. Read on to discover five ways making the switch can help you grow your small business.

1. Fewer Fees Than a Bank

Banks tack on many extra fees for users, including annual credit card fees, monthly checking fees and credit card processing fees. A credit union does not have many of these extra costs. Some small business owners report saving $1,000 or more by switching to a credit union.

2. Lower Credit Card Interest Rates

Specifically, the average credit card interest rate at a credit union is lower than that at a bank. While you are required to become a member with a deposit and may have to pay a small membership fee, you will save money over the long term by switching from a bank.

3. A Relationship-Driven Organization

If a small business is not performing well for any length of time, banks may withdraw their lines of credit. However, credit unions focus on building relationships and long-term commitments and may be more willing to stand with a struggling small business.

4. A Partner for the Long Haul

The commitment to small businesses is paying off. From 2008 to 2014, credit union business loans grew by 60 percent. During the recent economic downturn, these local organizations demonstrated their commitments to small businesses in ways that banks did not.

5. Support for Small Businesses

Coosa Valley Credit Union demonstrates our support of small businesses by our participation in the U.S. Small Business Administration (SBA) lending program. This means that we can cover most types of business expenses, including commercial rental, capital and construction while offering you a lower down payment and smaller monthly repayments compared with other loan types.

If you're interested in the savings and commitment a Coosa Valley small business loan can offer you, contact one of our dedicated business services officers today.