The Portlander’s Guide to Using Your Credit Union for Small Business Banking

If you reside in Multnomah County, Ore., chances are you’re a customer, employee, or owner of a small business.

The Portland Metro Chamber defines small businesses as firms with one to 50 employees. According to the Chamber’s “2023 State of Small Business” report, 94% of business establishments in Multnomah County are small businesses. Forty-one percent of small businesses in Portland metro are owned by women and 16% are owned by people of color.

The report also states that these small businesses employ more than 35% of Multnomah County’s workforce – or one in three workers. And small businesses pay nearly one-third of all wages countywide.

Although small business employment has grown since 2016, fifty-two percent of microbusinesses – those with one to five employees – have closed in that time.

“It remains hard to sustain a small business,” the report states. “With support to improve access to credit and streamline processes, more new small businesses could survive and grow.”

That’s where credit unions come in. In addition to offering essential financial products, credit unions provide a level of customer service and community engagement that sets them apart from traditional banks. Their member-owned structure means that profits are reinvested into the organization, leading to better rates, lower fees, and a focus on local economic growth.

For small business owners, these benefits translate into more than just financial savings – they provide peace of mind. Knowing that your financial institution is invested in your success can be invaluable, especially when navigating the challenges of running a business.

Credit unions support local entrepreneurs in numerous ways:

Relationship-Based Banking: Unlike large banks that treat customers as account numbers, credit unions build lasting relationships with their members. This personal approach can be especially beneficial for small businesses that need financial partners who understand their unique challenges and growth goals.

More Flexible Lending Criteria: Credit unions often take a more customized approach to lending, considering factors beyond just credit scores. If you’re a startup or an entrepreneur with limited credit history, a credit union may be more willing to work with you than a traditional bank.

Profit Returns to Members: Since credit unions are not-for-profit organizations, any surplus revenue is returned to members through lower loan rates, better deposit rates, reduced fees, and improved services. This can mean substantial cost savings for small business owners over time.

Accessible Financing: Credit unions often provide loans and grants to small businesses that might not qualify for traditional financing, including those in underserved communities or emerging industries.

Business Development Resources: Many credit unions partner with local organizations to offer business development programs, workshops and mentorship opportunities, fostering a culture of entrepreneurship within their communities.

Community Investment: By investing in community projects that create jobs and stimulate economic growth, credit unions contribute to the overall prosperity of the areas they serve.

Personal Service: Credit unions emphasize personalized, community-focused service. With a credit union, you’re dealing with someone you know and trust, making you feel like the member-owner you are rather than a number.

Member-Owned Structure: Being member-owned cooperatives, credit unions operate with the primary goal of benefiting their members’ financial health. This structure ensures that the needs of small business owners are prioritized in the services offered.

Credit unions offer a range of financial services tailored to small business needs:

Business Savings Accounts

Competitive Interest Rates: Credit unions may provide higher interest rates on business savings accounts, allowing businesses to earn more on their reserves.
Financial Cushion: Maintaining a business savings account offers a financial buffer for unexpected expenses or investment opportunities, contributing to the long-term stability of the business.

Business Checking Accounts

Lower Fees: Credit unions often offer business checking accounts with lower and fewer fees compared to traditional banks, which can lead to significant cost savings for small businesses.
Simplified Accounting: Having a separate business checking account helps streamline accounting processes by clearly delineating business income and expenses, making financial management more straightforward.

Business Loans

Flexible Terms: Credit unions often offer competitive small business loans with flexible terms, accommodating the unique needs of each business.
Personalized Lending Decisions: Small businesses often experience higher approval rates for loans at credit unions compared to large national banks. With a focus on understanding the holistic picture of a business, credit unions may have a more accommodating approval process, considering factors beyond standard credit assessments.

If you’re a budding entrepreneur or small business owner, Trailhead is your Portland credit union small business financial resource.

Portland Small Business Banking Begins with Trailhead

Business Savings Accounts with no monthly fees, competitive rates, free digital banking and bill pay, and they’re insured up to $250,000.

Products include Business Savings, Business Money Market Accounts and Business Certificate Accounts.

Business Checking Accounts with mobile payment solutions, Notary Public services, check processing services, and corporate checks.

Products include Business Checking and Nonprofit Checking.

Business Credit Cards with unlimited authorized signers, no hidden fees, mobile wallet, and a lower rate for balance transfers.

Products include a Rewards Visa Credit Card and Platinum Visa Credit Card.

Business Bundle! When you have a Business Checking account and a Business Credit Card with Trailhead, you’ll receive a 0.25% rate bump on your Business Certificate Account. Nonprofit organizations with a checking account are eligible for the Business Certificate Account rate bump without the bundle.

By choosing a credit union for your small business banking, you’re not only accessing competitive financial products but also gaining a trusted financial partner dedicated to your success. Whether you’re looking for affordable business loans, lower-fee accounts, or a financial institution that understands Portland’s entrepreneurial spirit, a credit union like Trailhead can provide the support you need.

For information about Portland small business loans or additional information on how Trailhead can help your small business, gather the information listed on the Join as a Business page and give Trailhead a call at 503-220-2592.