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3 ways credit unions help small businesses

December 04, 2023 | 2 min read

In this article

  • Better rates, fewer fees: Credit unions offer wallet-friendly perks for your small business
  • Personal touch matters: Local service and tailored support for your business journey
  • Community champions: Banking with credit unions means supporting your own success and local growth

Credit unions prioritize your needs as a member-owner, offering competitive interest rates, minimal fees and personalized support tailored to your business. Improve your business game with the unique advantages of a credit union!

Small businesses can make a big impact on the world. But being “the little guy” might mean you need some help along the way, especially with your finances. And that’s where credit unions can help. While banks are typically owned by shareholders, credit unions are owned by their members. That means when you do your business banking with a credit union, you can expect a relationship that serves your needs and financial well-being.

Knowing the fundamental differences between banks and credit unions can help you understand which type of financial institution best suits your needs. Here are a few ways that credit unions usually stand out, which could help your business:

  • Competitive interest rates and fewer fees.  Because credit unions serve their members and not their investors, they’re able to offer competitive interest rates on loans, not to mention higher dividends on deposit accounts. If you’re looking to fund your business, it’s a good idea to compare interest rates from multiple financial institutions, including credit unions. It’s also common for credit unions to have fewer fees associated with their accounts and services, including some accounts with zero fees.
  • Personalized small business support. Because credit unions are smaller and sometimes only serve members locally, they’re able to offer a level of personalized service you may not get with a big bank. You’ll be able to get financial support tailored to your business, whether you’re an experienced entrepreneur or just getting things off the ground. Before choosing a credit union, make sure you look for services like these:
    • Custom-tailored checking accounts  with no or low fees
    • Easy-to-manage savings accounts  with competitive dividends
    • Free online, mobile and phone banking
    • Unlimited online bill pay
    • Unlimited ATM transactions
    • Higher limits on deposits, cleared checks and currency transactions
    • Various kinds of small business loans (real estate, vehicle, equipment, construction and more)
    • Financial hardship assistance
  • A focus on members and the community.  Credit unions typically have a not-for-profit business model, meaning the money they make that isn’t used to strengthen the credit union’s capital is reinvested in its members in a variety of ways: competitive loan and savings rates, reduced fees, improved services and support of local communities in some cases. When you bank with a credit union, you’re more likely to give money back to yourself and to your local community, supporting local economic development.

Bank on service, stability and trust

Banks and credit unions are similar when it comes to their products and services, but their differences can make a monumental impact on small business owners. Banking with a credit union is more than a business transaction – it’s a relationship that grows with you as your ideas and needs evolve.

Looking to get started today? Check out the benefits of relying on a  credit union for small business support.

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The material presented here is for educational purposes only and is not intended to be used as financial, investment or legal advice.

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