When you first start a business, you need to make several choices that will impact its future. One is choosing which type of account to keep your business’ funds in.
You might assume the best choice is simply a traditional bank account. However, there are reasons to consider a credit union business checking account instead. The following are a few noteworthy examples:
A Credit Union is Member-Owned
There are several ways in which credit unions differ from traditional banks. One is the fact that credit unions are owned by their members.
This is beneficial to a business owner for numerous reasons. First, banks are profit-driven, not people-driven. You may thus find that a bank is less likely to serve your needs than a credit union simply because the owners of a bank don’t have a motivation to.
Credit union business accounts are particularly ideal when you’re starting a small local business. That’s because credit unions are community-based. The members all understand the community and tailor their services accordingly. This differentiates credit unions from banks, in which all banks in all regions must operate according to the same universal standards and policies.
Credit Union Fees Are Often Lower
Once more, the customers of a credit union are also the owners. As such, they make decisions that will benefit them.
This is one of the many reasons credit unions often tend to have better rates and lower fees than banks. Their rates and fees are not designed to enrich the bank owners. They’re designed to ensure members have access to affordable and necessary services.
This factor can be quite helpful when you’re just starting a business. At this stage of growth, there’s a good chance your budget may not be as robust as it will be later. As such, you need to save money in any way possible without sacrificing quality. Using a credit union for your business’ banking needs is one way you can achieve this goal.
You’re Not Giving Anything Up
Some people (whether they own businesses or not) are wary of joining credit unions because they are operating under the mistaken impression that credit unions offer fewer services than banks, or that they don’t have the ability to leverage technology in a way that banks can.
This actually isn’t the case. Most reputable credit unions offer all the services a new business owner will need. They also offer apps and other tech-based services. Additionally, numerous credit unions are part of large networks, which allows them to set up ATMs across the country, ensuring members always have access to their accounts. Basically, if you’re worried that starting an account with a credit union will be limiting, you don’t have to be concerned. This is highly unlikely to be an issue.
Just be aware that this is by no means meant to be a substitute for thorough business counseling. A single blog post can’t tell you which type of business account is definitely ideal. However, it can give you reasons to consider why an account with a credit union is an option worth considering.