Acquiring A Small Business Loan from Credit Unions
If you are an entrepreneur looking for options to fund your new business, don’t forget to check out loans offered by credit unions. In this article, let’s talk about the basic facts you need to know about this particular type of small business loan.
Who are the Credit Unions?
Credit Unions are non-profitable organizations which are created by members or employees of a company or a group. If your spouse or a family member works as an employee of a company, he or she may belong to a credit union. If not, you can still sign up to become a member of a Credit Union in your locality.
The objective of a Credit Union is to offer help and support to its members so they can be a really great source of financing for new businesses. Compared to banks and commercial lending companies, the rates and repayment terms are generally more favourable from credit unions. Credit Unions are regulated by the National Credit Union Administration (http://www.cuna.org/).
Small Business Loans and Credit Unions
The amount of loan available from credit unions is lower than business loans offered by banks and lending companies. Nevertheless, if you need a start-up capital or additional funding, it is definitely worth considering.
What’s great about small business loans provided by credit unions is that the application process is technically easier than applying for a bank loan.
Applying for a Business Loan
There are credit unions that offer SBA 7(a) loans which mean that your loan will be guaranteed by the SBA. If you are qualified, then this type of business loan should enable you to enjoy a really good deal when it comes to terms of payment.
Each credit union will have its own set of rules and regulations so you should inquire from your local union about their standards of eligibility. Needless to say, you need to be able to show that your small business has a strong potential to succeed in the market and deserves financing.
While the specific requirements may vary from one credit union to another, all of them will usually require the submission of a business plan, especially for start-up businesses. A good business plan should be complete and concise, presenting all the important information the lender needs to know about your business.
Irish Taylor is a bussiness loan consultant with Startup Business Loans and has been providing consumers and business owners with startup business financing since 1992. For years she has helped people with credit and loan problems especially pertaining to business start up, SBA loans and Unsecured loans.
Copyright 2010.
Related Article: Borrowing Money To Build Your Business
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