Are Credit Unions Good for Business Accounts?

Whether you operate a small business or a mid-market enterprise, credit unions offer business accounts that can help take your growing company to the next level. Focused on personalized services designed to support businesses through competitive rates and flexible banking, credit unions can act as a bridge to your future success.

Are credit unions good for business accounts? In short, yes. They offer a host of business services designed to serve their members, which can help businesses save big while accessing the necessary capital needed for continued growth. From business savings accounts, checking accounts, credit cards, loans, and even treasury management services, credit unions provide a wide variety of helpful services.

How can credit union business accounts benefit your company? Since they are not-for-profit and member-owned, profits made by credit unions are used to benefit their members rather than shareholders. This enables credit unions to offer these key perks with your business accounts:

Keep More of What’s Yours with Fewer Fees

Credit unions are structured differently than most financial institutions. Banks are owned by shareholders who profit from surplus earnings. Conversely, credit unions are owned by their members. This means any surplus earnings are given back to the members through lower fees for services, higher dividends on savings, and lower interest on loans.

Credit unions are designed with members, not profits, in mind, and this not-for-profit structure allows them to significantly reduce fees. This means your business can benefit from perks such as free checking accounts without a minimum balance. Your company can also avoid fees for overdrafts, wire transfers, ATM fees, and more. With little-to-no maintenance fees, you can keep what’s yours. Save on fees and keep banking costs down. This gives you more cash to invest back into your business without cutting into earnings.

Benefit from Competitive Rates

Your company can also benefit from better rates than traditional banking. This means higher dividend rates on business checking and savings accounts and lower interest rates on business loans.

Just as credit unions are able to charge fewer fees because of their member-owned structure, tax-exempt status, and lower operational costs, they can also offer better rates on business accounts. When profits stay at the institution, rather than going to outside shareholders, all members benefit, including the businesses that bank there. Higher rates on checking and savings accounts mean your funds have the potential to grow, even when you’re not using them.

Meanwhile, lower loan rates ensure you pay less toward interest and keep more of your money working for you. Low rates also enable small businesses to receive the financing they need to grow. They can get the capital they need at lower loan rates, making it easier to purchase equipment, increase inventory, invest in marketing, offer new products, and expand into new markets.

Receive Personalized Service

Credit unions’ member-first approach to banking means members benefit from more personalized service with flexible options.

Credit unions are designed to serve their members and are often education-forward, providing the necessary tools for businesses to be successful. They care about their members and their financial success. More than numbers on a page, you are part of the team.

This relationship-based approach to banking leads to exceptional customer service with customized solutions that can help propel your business forward. You have access to an experienced team that can provide local support and proven financial options. You can sit down with a business manager at your local credit union and discuss the account options that will serve your business best.

Experience More Flexibility with Community-Focused Lending

How else are credit unions good for business accounts? Credit unions have a vested interest in stimulating the local economy, so they work to support small and local businesses. To drive the local economy, credit unions like Capital Credit Union in northeast Wisconsin prioritize local growth through competitive rates and community-focused lending. They take note of businesses’ individual needs and circumstances and how they matter within the community as a whole, and decisions are made locally, not far away at a home office in another state.

Credit unions are great for small and local businesses because they are willing to look at other factors beyond credit scores. Relationship-based banking means they want you to have the necessary tools for success, so credit unions are more likely to make loans accessible to small businesses or companies with limited savings or lower income. They can consider income and history without limiting loan approval to a credit score.

Credit unions also invest back into their communities through membership perks and charitable outreach. Their teams of professionals live and work in the same communities as these local businesses, so they want everyone to win. When small- to-midsize local businesses receive essential capital with lower costs, it can help create jobs and foster economic stability.

Access Extensive Business Services

Credit unions boast comprehensive services for all your banking needs. When you open a business savings or business checking account, you gain access to more than just a bank account. Open a money market account and earn even more. Utilize tools that support your cash flow and keep your business running smoothly, such as treasury management services, construction loans, cash management services, and payroll services. Access financial education with provided classes and online resources. Earn more on purchases with a business credit card.

Change the way you do business when you join a credit union and watch your business grow. In any business venture, success depends on the choices that the owners make, and few are more important than how you invest in the financial future of the company.

Are credit unions good for business accounts? If your business can benefit from lower fees, better rates, personalized and comprehensive service, and flexible loan options, then the answer is yes!