While nearly identical to a bank in what it can provide, a credit union is a non-profit financial center run by its own members. Similarly to a bank loan, a credit union loan offers funding to be spent on anything, and must be paid back over a specific period of time with interest. In contrast, you must become a member of a credit union before you can receive a loan from that institution. If you meet the membership requirements of that credit union, you also must pay a one-time membership fee and a deposit of up to $25.
Loan Details
Max. Loan Amount
$250 to $50k
Loan Term
3 - 25 years
Interest Rates
3% - 12%
Speed of Funding
1 - 2 months
Loan Requirements
In contrast to other loan types, a more holistic approach is taken when evaluating whether a business qualifies for a credit union loan. This is because you must first become a member of a specific credit union before you apply for a loan. While annual revenue, credit score, and time in business among other things are important, no one factor is disqualifying.
Pros
- Low interest rates
- Low fees
- Easier to qualify than banks
- Flexible loan terms
Cons
- Slower speed of funding
- Hard to find the right credit union
- Low-tech experience
1
Find A Credit Union
Search for the right credit union to join.
2
Become a Member
Join the credit union so you can have acess to loans.
3
Apply and Recieve
Apply for the loan you need. After approval, funds will be directly deposited into your bank account and available for immediate use.
Best Use of a Credit Union Loan
- Refinancing
- Purchasing large equipment
- Maintaining cash flow
- Debt consolidation
- Investment opportunities
Best Use of a Credit Union Loan
- Refinancing
- Purchasing large equipment
- Maintaining cash flow
- Debt consolidation
- Investment opportunities