3 Reason You Should Use A Credit Union For Your Business Loan Needs

Most of the time, when business owners (new entrepreneurs or experienced proprietors) think about financing their businesses, they think about their local banks – which they should. After all, they drive by these organizations everyday and might even have an account or two with them.

But, there are times when these banks might not be the best options for landing a needed business loan – either because the bank does not offer the loan product your company needs or because (like most of us these days) you just do not qualify under their heighten standards.

However, that does not mean that you still cannot get the financing your business wants – from start up funding to growing an established business – from a local financial institution other than your bank.

Did you know that some local credit unions also offer business loans? And, do you know that if they don’t, they do offer other financing products that you can use to start or grow your business?

Credit Unions For Business Financing

If you can get a loan from your bank – great. You should start there. But, if you can’t, simply drive right over to your local credit union and see what loan programs they offer.

Not only do you stand a good chance of getting the capital you need but you might be able to do it cheaper and with a lot less hassle.

Let me explain: First let’s call these CU for simplicity.

CUs, when it comes to business financing, offer the following benefits:

1) Business Loans – Some CUs do provide true business loans – the same products that your local bank offers. And, there are more of them doing this then you think.

Further, in many cases, if the CU does make business loans they usually don’t have such high credit standards that other lenders do. CUs tend to focus more on how your business and their loan impact the community at large – not just their bottom line. Most CUs have lower credit score requirements, better debt ratio limits, lower overall collateral value levels and usually spend less effort on scrutinizing income and tax return information. Simply put, their business loans (the same products that banks and other business lenders offer) are easier to qualify for.

According to State Employees’ CU in Raleigh, NC, when talking about how they underwrite their loan products:

Our focus is not on profits, but on fair, quality service.
So, not only are there underwriting criteria easier to pass, but since they make their loan decisions locally, they tend to take more of your story into account – which only benefits you and your ability to get approved.

2) Personal Loans – while banks also offer personal loans, again, CUs have easier approval standards. And, they are more flexible in the products they offer – making their loans fit you and not the other way around.

Now, you might think that you don’t want a personal loan for your business. But, I am here to tell you that all loans, business, personal or otherwise, from banks, CU, or private lenders, are in fact all personal loans.

Here’s why. You apply for a business loan – the type of lender does not matter – and you jump through all the hoops required to qualify. They look at your revenue or income, they look at your current debt, they look at and valuate your collateral and in the end, they approve your request.

They tell you what your monthly payment will be, they tell you how they are going to attach a claim to your assets and then – here is the kicker – they make you sign a personal guarantee – even on a business loan.

And, it is this personal guarantee that washes away all that other stuff about business credit facilities. Because, if you or your business do not pay as agreed, that personal guarantee allows that lender – bank, CU, private lender – to come after your personal income and assets to make that loan whole – which is the very definition of a personal loan. The one single item that you are looking to avoid by getting a business loan – avoiding personal risk – is also the one single item you cannot avoid, no matter what type of loan you are requesting.

However, there is nothing that states that you cannot use the proceeds from a personal loan in or for your business.

Bottom line here for you is this: If you can’t get a business loan, look to the personal or consumer products CUs offers. Money is just money after all and CUs make getting your hands on that needed money (personal or business) easier.

3) Cheaper All The Way Around – As CUs are non-profit, they have lower application, origination and processing fees on their loan products. They have lower annual fees if any (say on lines of credit). And, they usually charge lower interest rates.

All items that do nothing but benefit you and your business. Why over pay when you don’t have too?

From MyCreditUnion.gov credit unions offer:

Fees and loan rates at credit unions are generally lower, while interest rates returned (dividends paid on deposits) are generally higher, than banks and other for-profit institutions. Credit unions are democratically operated by members, allowing account holders an equal say in how the credit union is operated, regardless of how much they have invested in the credit union.
Conclusion

As I have hoped to point out here, if you already have a relationsh

A Course in Miracles is a curriculum that comes from Jesus Christ. It’s very practical. If you really read the gospels and the teachings of Jesus from 2000 years ago, you could see that it was a lot about forgiveness and love. Follow a-course-in-miracles Benefit from fantastic savings on Top online casino , just by taking a look at casino-top-uk For additional local grand fortune casino visit . You may be experiencing a difficult time right now, financially, and you need a little help. You can visit ineedhelppayingbills to learn about getting some financial assistance, including a short term loan to help you get caught up. Trying to find solfilm bilglass1 ? Check out this page: https://www.bilglass1.no check out this page for a dependable seller that will give you the cheap subuxone 8mg online you're looking for quickly and easily.
Posted in Uncategorized | Comments Off on 3 Reason You Should Use A Credit Union For Your Business Loan Needs

SBA Small Business Loans – A Huge Benefit to Start-Up Businesses

Setting up a new business is never easy. There are innumerable details that need to be taken care of. Start-up businesses are mainly dependent on loans for almost all their business requirements. It is therefore extremely important to find an appropriate and reliable lending source to cater to their financial needs. However, since most conventional lenders and banks are not keen on providing loans to new business owners due to various security reasons, opting for SBA small business loans can be an excellent idea.

Small businesses can contribute immensely in developing and enhancing the nation’s economy. The Small Business Administration (SBA), which is a United States government agency that provides loans to small businesses with the aim of improving the country’s financial condition. These loans are meant to support the establishment of small businesses by providing through adequate financial assistance. These loans cannot be obtained directly from SBA, but through a number of their lending partners working in accordance with the SBA rules and regulations.

The SBA offers a wide variety of loans that demand different qualifications of the borrowers. The various financial programs offered by SBA such as surety bonds, debt financing and equity financing are designed to cater to the different financial requirements of borrowers. In order to avail a loan from them, it is extremely important to understand how the SBA works. Let us discuss some basic rules and regulations of the SBA:

The SBA loans are provided to business owners at a lower interest rate than banks and other conventional lending sources owing to the fact that start-up business owners do not have adequate capital to opt for loans with high interest rates.

SBA does not provide loans to small business owners directly. Instead, they merely set certain rules and regulations that are strictly followed by their partners, including private-sector lenders, micro-lending institutions and community development organizations, who are authorized by the SBA to provide loans to start-up businesses.

The loans are provided to the business owners under an SBA guarantee to ensure that the loan is repaid on time to the lending partners. Business owners cannot avail SBA small business loans in case they have the eligibility to obtain loans from other lending sources on affordable and reasonable terms.

You can obtain SBA loans fast and without any kind of hassles. They can be acquired on an immediate basis as soon as they are applied for. This can be immensely beneficial for start-up businesses that need financial assistance for all their business needs. Delay in acquiring loans can create problems for them in setting up the business.

One of the most beneficial aspects of SBA loans is that they can be availed even if you have a poor credit record including bankruptcy, insolvency, IVA etc. It can be an excellent way to improve your credit records.

SBA offers various kinds of loans, including 504 for purchasing real estate and equipment, 7 (a) for common small business loans, disaster loans and microloans. Not all banks issuing SBA loans offer the same loan programs. Moreover, in accordance with individual bank policies, the loan requirements for a particular program can differ from bank to bank.
The SBA rules and regulations for small business loans are designed

Posted in Uncategorized | Comments Off on SBA Small Business Loans – A Huge Benefit to Start-Up Businesses