Credit Unions That Do Business Accounts

Credit unions offer a distinct option for businesses seeking financial services, differing from traditional banks in structure and purpose. A credit union is a not-for-profit financial institution owned by its members, rather than external shareholders. This cooperative model means that any earnings are typically reinvested into the credit union through reduced fees, more favorable interest rates, and enhanced services for members. These institutions aim to provide a secure environment for saving and borrowing, often prioritizing the financial well-being of their members and the communities they serve.

Credit Unions Unique for Businesses

The operational framework of credit unions distinguishes them from commercial banks, particularly for business banking. As member-owned cooperatives, credit unions are governed by a board of directors elected by their members, typically under a one-person, one-vote system. This structure means decisions are made with the collective interests of the membership in mind, fostering an environment where the institution’s success is directly tied to the financial health of its members. This differs from banks, which are for-profit entities focused on generating returns for shareholders.

Credit unions’ not-for-profit status allows them to operate with a different financial philosophy. Instead of distributing profits to shareholders, any surplus income is returned to members in various forms, such as lower loan rates, higher savings rates, and reduced fees. This approach can lead to a more community-focused banking experience, where the institution invests in local businesses and economic growth. Many credit unions emphasize personalized service and a deep understanding of local market conditions, responding to the needs of their business members.

Business Accounts and Services Available

Credit unions provide a broad spectrum of financial products and services for business operations.

Business Account Offerings

Business checking accounts: basic, interest-earning, and analyzed options.
Online and mobile banking, business debit cards, and remote deposit capture.
Integration with accounting software, ACH, and wire transfer services.
Savings accounts and money market accounts with competitive interest rates.

Business Lending Options

Term loans for investments like equipment purchases, working capital, or acquisitions (terms up to seven years).
Lines of credit for managing cash flow, inventory, or unexpected expenses (secured and unsecured options).
Commercial real estate loans for purchasing, refinancing, or constructing properties (amortizations up to 25 years).
Equipment loans for machinery or vehicles (purchased equipment often serves as collateral).
Small Business Administration (SBA) loans, offering lower interest rates and longer repayment terms.

Additional Business Services

Merchant services for processing credit and debit card payments.
Payroll services to streamline employee management.

Locating a Credit Union for Your Business

Finding a credit union that caters to business needs involves understanding their unique membership requirements. Unlike traditional banks, credit unions typically operate under a “field of membership” criterion. This eligibility can be based on various common bonds, such as where you live, work, worship, or attend school. Membership might also be tied to employment with a particular company or affiliation with certain associations or organizations.

To begin your search, online credit union directories and national association websites can help identify institutions with business offerings. Many credit unions also have local branches, and some participate in shared branching networks, which can expand access to services across different locations. When evaluating potential credit unions, it is important to verify their specific business services, ensuring they align with your operational needs. Inquire about their online and mobile banking capabilities, as digital access can be a significant factor for managing business finances efficiently.

What You Need to Open a Business Account

Opening a business account at a credit union requires specific documentation to verify the legitimacy of your business and the identities of those authorized to manage the account. A fundamental requirement is the Employer Identification Number (EIN), which is a federal tax ID issued by the IRS for businesses. While sole proprietorships and single-member LLCs without employees may sometimes use a Social Security Number (SSN), an EIN is needed for most businesses.

You will need to provide legal formation documents that prove your business’s legal existence and structure. For corporations, this includes Articles of Incorporation and corporate bylaws. Limited Liability Companies (LLCs) will need their Articles of Organization and an operating agreement. Partnerships require a partnership agreement. Additionally, a business license or “Doing Business As” (DBA) certificate might be requested if your business operates under a name different from its legal entity name.

For all authorized signers, government-issued identification (such as a driver’s license or passport) is required to verify identity. Personal details, including Social Security Numbers, will be collected. Proof of business address, such as a utility bill, may be needed. Credit unions may also require information on beneficial owners (individuals who own 25% or more of the equity interest in the legal entity) and those who hold significant management responsibility.