One of the most important steps you can take when starting a business is separating your business finances from your personal finances. To do so, you need to create a separate account for your business.
You may choose to create an account with a traditional bank. However, it’s important to understand that you do have other options from which to choose. For example, instead of working with a bank, you may choose to start an account with a credit union.
A credit union differs from a traditional bank in several ways. The primary difference between the two is that the vast majority of banks are for-profit businesses. To be a credit union, an institution has to be non-profit. Additionally, the members of a credit union are also the owners of a credit union. As such, they all have a say in how a credit union operates and serves its customers.
That said, not all credit unions are equally able to serve your needs. To choose the best credit union for your business, keep the following tips in mind:
Look for Tech-friendly Service
There are many who are wary of switching to a credit union because they believe that credit unions don’t have the resources to provide such services as apps, easy ATM access, and other services that depend on leveraging technology. That’s not the case. Many credit unions also provide these services.
However, it is important to confirm that a credit union takes such progressive steps before deciding they can serve your business properly. Before joining one, make sure a credit union prioritizes taking advantage of standard modern innovations.
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Check Fees and Rates
There are many reasons some people choose to join credit unions instead of creating typical bank accounts. One is the fact that credit unions have been found to have lower rates and fees for loans and related services and products.
It’s highly likely your business will financially benefit from the lower rates and fees available through a credit union. That said, this is a factor you should account for when assessing whether a particular credit union is right for your business.
Check for ATM Access
Depending on the nature of your business, you may have to travel often when doing work. You need to be confident you will be able to access your account and withdraw funds when you need to.
This highlights another misconception people tend to have about credit unions. They believe that because credit unions focus on providing local, community-based services, they offer limited access to accounts and ATMs.
That often isn’t so. Many credit unions belong to networks that allow for account and ATM access throughout the country. You simply need to confirm that a credit union you’re considering becoming a member of offers this service.
Just remember that making decisions about your business involves carefully evaluating a wide range of factors. You shouldn’t decide whether to join a credit union based on the advice here alone. However, these tips can generally help you decide if a given credit union can serve your business’ needs.
