Back in August, I wrote When the Bank Says No, Ask a Credit Union after the Los Angeles Times wrote that credit unions were becoming more active in providing business loans. In this month's edition of Entrepreneur Magazine, A Perfect Union describes how credit unions are focusing on old fashioned service and relationship to attract more customers for business loans.
The article highlights three reasons that credit unions may be more successfully competing with banks for business loans.
- Credit union participation in the SBA's flagship 7(a) business loan program due to a change in SBA rules.
- The Export-Import Bank has begun to identify credit unions best suited to provide export financing.
- The credit unions' lending capacity for business loans may get a boost from proposed legislation in Congress.
At the end of the day, the success of credit unions in providing more business loans will be based upon how well it builds relationships with business borrowers. If they prove to be more flexible in their underwriting and lending practices and more attune to the needs of business borrowers, they may be successful in offsetting the lack of breadth of their financial offerings to the business community.
Need help finding the right lender or telling your story the right way? Read "Matchmaking for Business Loans"
Related Tags: credit union, Los Angeles Times, factoring, business loans, bank loans, entrepreneur, SBA
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