Growing Your Business: Planning for 2014 and Beyond

If you’re a small-business owner, you may be looking for better financial solutions to help stay on track in the coming new year. Even if you have an established relationship with your credit union, you might not be aware of all the services available for your business’s needs. As part of your business planning strategy for 2014, take a look at some of the unique business services you can take advantage of at your local credit union.

Credit unions are a great option for small businesses for several reasons. Credit union small business lending has grown consistently in the past year. They have an intimate understanding of local business concerns and they often can provide loans when bigger banks in the area may refuse. Here are just a few of the valuable banking services credit unions can offer businesses, including commercial loans, savings products and merchant services.

Business loans

Typically, credit unions offer a few different kinds of loans. Credit unions can frequently offer lower interest rates, and since their representatives are more familiar with the local business community and economy, they are invested in working with business owners to find diverse financial solutions. They may also offer custom bundled services tailored to meet your business needs

• Business lines of credit allow businesses to quickly acquire funds for any business-related expenses, and are available both secured (collateral required) and unsecured (no collateral required).
• Term loans can help with your business’s monthly expenses by allowing you to purchase business equipment, supplies and other things you need to keep your business operations running smoothly. These loans tend to require collateral, are usually set up for a predetermined amount and mature within 1-10 years. Many credit unions offer low, fixed interest, as well as floating interest options.
• Company vehicles and real estate loans are specialized financing options for businesses. Vehicle financing options include longer terms and credit unions will often loan up to the full cost of the purchasing price. Financing for other vehicles such as tractors or wreckers, and related equipment, can be available, as well. Your real estate options can include purchase and refinance options, longer-term financing and competitive rates.

Business savings and checking

If you’re looking for the higher paying interest rates that come with business savings and money market accounts, your local credit union has got you covered. Many credit unions offer generous interest rates on money market accounts and no minimum balance requirement on their flexible business savings accounts. Whatever you’re looking for, your local credit union has a savings vehicle that suits your business’s unique needs.

Business checking accounts help you keep track of your business’s finances, and allow you to make check or cash deposits for your business. However, these accounts tend to have minimum balance requirements and fees for deposit items over a certain amount. Be sure to check if your credit union offers a free business checking account, so you can avoid the fees.  

Merchant services

Local financial institutions provide a variety of solutions to your point-of-sale needs. Some of the most popular include check authorization, credit and debit card acceptance, as well as e-commerce solutions. Options for renting and purchasing card machines or reprogramming your current machines are often included. You can also expect support and services to ensure the highest level of security and fraud prevention.

Lastly, choosing to bank with your local credit union will help you develop a long-lasting relationship and serve your local area in the most sustainable way. In 2014, make sure you research the wide variety of business solutions with competitively low interest rates and fees. Taking advantage of your local resources is one of the best ways you can ensure your business’s growth in the coming years.

 

^Sara Collins, NerdWallet