If you want a loan for your small business, want to set up a new savings account, or plan to switch banks, choosing a credit union over other banking institutions is a nice idea. Credit unions are not like traditional banks, though they serve the same purpose and offer similar services.

A credit union is a cooperative, non-profit, and member-owned financial institution. Credit Unions extend financial support to all members, offering various perks and encouraging their savings. Nowadays, the services offered by credit unions have become a boom for any small business. 

Curious how credit unions help small businesses? Read on.

Enjoy Full-Service Business Banking 

If you think the credit union offers only limited products and services to businesses, you might have to think again. Your local credit union may extend a full package of small business banking services, including lending, checking, investments, and credit card. Being a small business, you’d be able to make the most of these services. 

You do not have to settle for a ‘one-size-fits-all’ type of product. There are many options to meet the needs of your brand. You can also get approved for small business loans, which not every bank may promise. This factor helps to strengthen your trust and partnership with a credit union. 

Get Rewarded with Good Rates 

Credit unions do not entertain the concept of shareholders. The profits earned by these institutions go directly to their members through desirable rates. 


As a small business account holder with a credit union, you may expect to receive higher rates that are comparatively much more attractive on your interest-earning accounts than a traditional bank. Besides this, you may also take advantage of lower interest rates on all sorts of commercial lending products. This process can help you save substantially over the length of your loan. 

Free Structure Benefitting All the Members 

Banks and other financial institutions charge high fees. However, it is not the case when you seek services from a credit union. Fees under credit unions are structured to benefit you. 

Did you know when you make a transaction, banks charge you a fee for each item included in the transaction? Banks will process 100 items without fees and then charge an additional fee for each item after the 100th. On the contrary, credit unions follow a multi-item transaction process while charging a nominal amount as fees. You may have multiple items within a single transaction and you won’t be charged an additional fee for each additional item after the 100 items. 

Work Together as Community 

You decide to open your small business to serve and add value to your community. Similarly, local credit unions invest in the growth and development of their community through small business lending and give-back opportunities. It’s achieved using mediums like scholarships, sponsorships, and donations. 

Hassle-Free Access to Your Accounts 

Many business owners choose well-known banks as their financial institutions. It might be because they feel that the offerings at such banks are better than their less-famous counterparts. 

online tech

Furthermore, using online technology while offering their services is another reason they choose these banks. But do you know that credit unions also offer these perks to their members? 

You may make most of the same mobile banking and online access as larger banks. Many credit unions provide the ability to transfer funds between accounts, view your real-time account activity, make an instant deposit, and pay bills online. 

Some credit unions offer localized services and products to the business owners living and working within the local area. Members have access to hundreds and thousands of ATMs worldwide. 


Since the advent of banking, consumers have been trained to throw their trust into established financial institutions. And at the same time, they view burgeoning financial players through the lens of skepticism. 

Nobody wants to risk their money with someone who is yet to establish their credibility, but that was a thing of the past. Credit unions today are modelled on Government-accreditations and are fully regulated by the concerned authorities. 

As a result, businesses and sole proprietors are leaning towards these new-fangled financial institutions and are immensely benefiting from their services, products and digital experiences. 

Whether it’s loan applications, interest rates, or charges, using credit union services for your small business is a good idea. Find the most accessible credit union services near you and join their membership! Their onboarding process is relatively convenient as compared to a traditional bank, and in case there’s any paperwork involved, it will be taken care of at their end without bothering you.