Give 'Em Credit

Signing up with a credit union
  • ---Shares

Entrepreneur magazine, September 1997

Long thought of primarily as a big-company benefit, credit unions are opening their doors to small businesses. Andrew Lingo of Chaco Credit Union in Hamilton, Ohio, says there are approximately 6,000 well-established state-chartered credit unions in the United States and Canada that accept new companies as members--at no charge to the businesses.

The benefit to your employees is threefold: They'll probably increase their savings rates (especially if you offer automatic payroll deduction), they'll have access to lower loan rates, and they'll typically pay lower fees--if any--for services.

Only state-chartered credit unions are able to add new companies to their memberships. (Federally chartered credit unions are restricted from accepting new companies until a legal battle between the credit unions and banks is resolved; the case will be heard by the U.S. Supreme Court later this year.) To find a credit union that will accept your company, Lingo advises contacting your state's league of credit unions or simply calling a local credit union.

Once your company is approved, Lingo suggests designating one person as the primary liaison with the credit union; that individual will maintain information about membership, as well as enrollment forms and loan applications. It's also a good idea to ask a credit union representative to conduct on-site enrollment to kick off the benefit and perhaps return periodically for follow-up or new sign-ups. Finally, Lingo says, it's important that the business owner lead by example--so be the first person to sign up.

Contact Sources

Chaco Credit Union Inc., (513) 868-5720

Next Article:
3 Tips Navy SEALs Offer That Every Entre...
OK

This website uses cookies to allow us to see how our website and related online services are being used. By continuing to use this website, you consent to our cookie collection. More information about how we collect cookies is found here.