Published By Faith Stewart at October 20th, 2021
Banks aren’t opening their vaults as easily for businesses these days as they have in the past. Many business owners are finding it necessary to get creative when it comes to business funding. In many cases, credit unions are seizing the opportunity to step in and fill the gap.
In fact, back in 2018, Member Business Lending (MBL), partnered with CU Direct to help this process along. MBL is the leading credit union service provider when it comes to business loan origination services. CU Direct, well known for the CUDL (Credit Union Direct Lending) system, works with thousands of auto dealerships to help facilitate auto-financing through credit unions.
Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.
Together, the two are able to streamline the credit union business loan processes. It’s a good thing too, because more and more businesses are looking to credit unions to get the funding they need since banks aren’t coughing it up.
So, is credit union direct lending right for your business? Let’s find out.
While all lenders have their own requirements, it’s a fair bet you are going to need to provide the following to any lender.
Most lenders will be looking for the following:
If you cannot provide all of the information, it could go a couple of ways. They could automatically deny the loan. However, some credit unions are willing to review the information provided.
Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.
It’s important to note that personal credit score is handled differently by each institution when it comes to credit union business loans. It’s a fair bet that if they are asking for a personal guarantee, they are going to want to see a strong personal credit score.
However, we have heard from at least one credit union that this is not always the case. This particular credit union does not have a standard minimum credit score requirement. They say they take each loan application on a case by case basis.
So, even if you do not have a great personal credit score, if you are strong in the other areas you may still qualify for a business loan from a credit union. You just have to find the right lender.
So, why would you pursue a loan from a credit union over a loan at a bank? In short, lower interest rates and fees. Credit unions are cooperative, non-profit organizations. As such, they do not pay federal and state income taxes. So, they are able to pass the savings on in the form of lower rates and fees.
Due to a difference in structure and loan application review processes, credit unions are also often able to process loans much more quickly than banks.
Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.
At this point, you are likely either thinking, “I can do this!” or “What am I going to do now?” You’ve either realized you’ve got this in the bag, or you know you need to pursue other options until you get some issues taken care of.
There are a few things you can do. If you need money right now, you can look at getting a loan from an alternative lender. Credit Suite’s Credit Line Hybrid funding may also be an option. There are a lot of funding options out there.
Whatever you do, it’s likely you need to work on your fundability while you do it. Most business loan denials result from a fundability issue. You can get a free consultation with a business credit expert to help you analyze your fundability. They can show you what you can do to improve your chances of approval. With strong fundability, you’ll be able to get the best deals on the business funding you need, when you need it.