Entrepreneurs are a key segment of our economy. They infuse job creation, economic development and innovation into their communities.
To help facilitate all that growth and development, credit unions play an important role in ensuring entrepreneurs have the right financial tools to help them succeed.
Since National Entrepreneurship Week kicks off on February 11, let’s take a look at three main ways credit unions can support entrepreneurship to better serve these members.
Entrepreneur-Friendly Financial Solutions
Oftentimes, entrepreneurs need access to different financial products than the typical credit union member.
In many cases, entrepreneurs will seek out a business loan, which often comes at lower rates from a credit union than a larger national bank. Of course, rates will vary between credit unions as well–both on savings and loan products. However, better rates on financial products are a clear advantage that credit unions can offer to all members. This is especially true of entrepreneurs who are managing tight budgets and strict business plans.
Even still, credit unions may want to consider other types of financial products that entrepreneurs in their area may be interested in. This could include high-yield savings accounts, lines of credit, digital banking, low monthly payments, customizable terms and more.
5-Star Customer Service
One of the main draws of credit unions over traditional banks is the level of customer service members can expect from these institutions.
First, credit unions tend to offer more personalized services that are better tailored to members’ unique needs. Second, they often have localized expertise to help entrepreneurs network and make connections with potential vendors, customers and clients in their communities.
This is particularly important to entrepreneurs and small business owners who need all the support they can get.
Thus, maintaining this nimble one-on-one focus and dedication to customizing the banking experience is something that credit unions shouldn’t lose sight of. It’s a huge value-add to entrepreneurial members.
Training for Financial Success
Another way that credit unions can support their entrepreneurial members is by providing relevant business banking training or educational programs to help entrepreneurs build up financial literacy.
Lack of capital and poor cash flow management is the top reason small businesses fail, according to Business Insider. Whenever possible, credit unions can do their part to help these members establish a strong foundation of money-management tactics.
Such education also aids credit unions. For example, if a small business owner takes out a healthy loan and can’t manage that capital in a productive way, he/she could default on the loan. Or worse, the business could go into bankruptcy.
All in all, entrepreneurship takes a village. And entrepreneurs are lucky to have community-minded credit unions on their team.
About Extensia Financial
Established in 1998 and headquartered in Simi Valley, CA, Extensia Financial is one of the most seasoned credit union service organizations (CUSO) focused on commercial real estate lending. For decades, we have partnered with credit unions across the country to offer competitive and collaborative CRE loans. We also uniquely support and guide our partners through the entire lifecycle of our loans. Extensia Financial is a proud member of the AVANA Family of Companies.
Contact us today to learn more about becoming an Extensia Financial partner.