A lot of businesses choose credit unions over banks for their business banking. The difference between credit unions and commercial banks can be best illustrated by one core concept: ownership. For commercial banks, the ownership power lies with shareholders. With credit unions, ownership power lies with the account holders.
Even though credit unions and banks are both financial institutions, they have a surprising amount of differences. When you take your business banking to a credit union, those differences can work to your advantage in substantial ways.
Being account holder-owned means credit unions have a finger on the pulse of what their account holders want. Even more, they have a strong presence in local communities – not just city centers – which allows credit unions to directly impact the communities they serve in positive ways.
Commercial banks typically charge business account holders monthly maintenance and transaction fees. Because credit unions are not-for-profit, they generally charge fewer, lower or no fees on business accounts.
Local Market Knowledge
Credit union account holders are generally locally based or at least have a local presence. For a business owner, this is a good thing. They’re not working with a business banker in another state; they’re getting local market knowledge from a local industry professional. This puts business owners in a position to get the best products or loans for a specific type of business.
Credit unions were built on the philosophy of putting account holders first. Whether you’re an aspiring entrepreneur or making a change after a decade in business, great service is critical when choosing your financial partner. Credit unions aren’t in business for a quick dollar; their goal is to build long-term relationships that blossom and last a lifetime.
Tools and Resources
The business products available at a commercial bank and credit union are virtually the same. However, the rates, fees and customer service are surprisingly different. Credit unions offer competitive checking and saving accounts, business loans, credit cards, investments and the like, along with partnering with best-in-class providers for payment processing and payroll/HR solutions.