Starting A Business? 5 Ways Credit Unions Can Help Entrepreneurs

When you start a small business, you need good partner organizations that can help you create stability, boost capital, and manage your changing finances. One key partner you should have on your team is your local credit union. Why? Here are a few of the most important ways they'll help your business get off the ground.

1. Providing Capital 

First and foremost, you need a source of capital to start your business and weather the early days. This can be hard to come by, depending on your own assets, credit score, and business plans. Local credit unions are some of the best places to turn for loans and credit for small businesses because their remit is generally to serve the interests of the community. 

2. Keeping Rates Low

Borrowing money can be expensive. The more you pay in fees and interest, the less you have to work with. Credit unions are often known for offering lower interest rates on loans, lines of credit, and credit cards than many larger banks and credit card companies. Lower costs also mean more manageable monthly repayments. 

3. Educating You

While you may know a lot about the services or goods you provide as a business, you probably don't know as much as you should about business finances. Many credit unions today offer one-on-one help for entrepreneurs to learn how to use bank and online tools to manage their money. They also often provide free online and in-person workshops on subjects like credit scores, business entities, cybersecurity, and debt management. 

4. Managing Accounts

Modern credit unions provide a range of tools to help you keep track of your funds. Business owners generally start with business checking and savings accounts. You may choose more than one account in order to keep money separate. Look for tools like the ability to categorize business transactions, see charts of your expenses, and set financial goals. 

5. Finding Solutions

The benefit of working with a local financial institution is that you are a bigger fish in a smaller pond. With a multinational, corporate-owned financial institution, each small business is just a number on a screen. Their motivation to help you find solutions to your particular challenges is minimal. Your credit union, though, spends more time working for you on what you actually need. 

Where to Start

Ready to learn more about how your local credit union can help you make your entrepreneurial dream come true? Start by meeting with credit unions in your neighborhood. With their commitment to small, local businesses, you're sure to have a great ally in no time.