How to Get a Business Loan from Consumers CU

(July 2024)

How to Get a Business Loan from Consumers CU

In This Article

Every entrepreneur needs capital to turn their vision into reality. With a high Forbes rating, a business loan from Consumers Credit Union provides the business loans to finance your business.

Consumers CU offer a fast, flexible funding for your venture’s needs through business loans and lines of credit. With competitive rates, flexible terms, and a straightforward application process, they provide accessible lending for startups and existing companies alike.

Review the steps to apply for optimal Consumers CU business financing for equipment, expansions, or operating capital.

With knowledgeable Consumers CU business bankers guiding you through solutions, financing your ambition is within reach.

SUMMARY

  1. Become a member
  2. Size up loan options
  3. Gather your financials
  4. Prepare your business financial documentation
  5. Check your eligibility
  6. Review loan features
  7. Apply and submit documents
  8. Negotiate respectfully
  9. Await a lending decision

Recap

1. Become a Member

To be eligible for a business loan from Consumer CU, you must become a member. Take note of the following:

  • Pay a one-time membership fee as joining is open to anyone nationwide.
  • Deposit and maintain at least $5 in your Consumers CU savings account to keep your membership active.
  • To join, you need to be 18+ years old and provide your SSN/ITIN for identity verification. If you’re under 18, you must visit a branch.
  • Submit a valid government ID like a driver’s license when applying to confirm identity.
  • Complete the online membership application.
  • Have account funding ready through your other bank accounts, debit/credit card, or in-branch deposit.
  • Manage your new membership digitally or visit one of the branches in person.

2. Size up loan options

To gain a business loan from Consumer CU, review the loan options. Consumers CU offers a range of business lending products to meet your different needs. Evaluate these options to choose the best funding solution:

  • Term loans – Obtain lump sum financing for major investments, equipment purchases, renovations, etc. Terms of 1-25 years available. Can be secured or unsecured.
  • Lines of credit – Gain revolving access to capital up to a set limit. Draw funds as you need rather than a lump sum. Make monthly payments on drawn amounts.
  • Equipment loans – Financing specifically for purchasing vehicles, machinery, or other equipment.
  • Commercial mortgages – Real estate loans to purchase or refinance office buildings, retail space, warehouses, and multifamily properties.
  • SBA loans – Financing partially with a guarantee by the SBA for your small business. Offers lower down payments and more flexible criteria.

3. Gather your financials

To access a business loan from Consumer CU, gather your financial documents. When applying for a Consumers Credit Union business loan, you need to provide key financial documents that portray your company’s stability and ability to repay debt.

Have the following before starting your application:

  • Tax returns
  • Profit/Loss statement
  • Balance sheet
  • Cash flow projections
  • Personal financials

Remember, thorough, accurate details are key to ensuring quick loan decisions and securing optimal amounts and rates.

4. Prepare your business financial documentation

To easily gain a business loan from Consumer CU, prepare your business financial documentation. When applying with Consumers Credit Union, be ready to fully detail how you intend to use the business loan proceeds:

  • Equipment purchases – Specify the equipment, costs, and how it will support operations.
  • Facility expansion – Explain how you will use the capital to expand – build out costs, new leased space, capacity increase, etc.
  • Marketing – Share specifics on the advertising channels, campaigns, and growth goals you’ll fund to boost revenue.
  • Cash flow – For working capital, describe reasons for shortfalls, future projections, and impact on business viability without funds.

Avoid vague purposes like “growth capital” or “general expenses” that appear disorderly.

5. Check your eligibility

To source for a Consumer CU business loan, check your eligibility. To qualify for the best business loan terms and approval odds, you must meet these key eligibility requirements:

  • Time in business – Have been operating for 2+ years.
  • Revenue – Gross annual revenue of $100,000+ in order to repay debt through ongoing cash flow.
  • Credit score – A minimum personal credit score of 700+.
  • Income – Enough personal or household income to cover living expenses separately from business cash flow.
  • Legal business – Proper business licenses, registrations, and organization documents.
  • Identity verification – Valid SSN/ITIN, driver’s license, and other government ID matching applicants.

Note that the more criteria you satisfy, such as 5+ years’ operating and revenues over $500,000, the stronger your application will be.

6. Review loan features

To receive a business loan from Consumer CU, review the loan features. Consumers CU offer flexibility in tailoring a business loan’s amount, repayment term, rate type, and other features to meet your needs:

  • Loan amounts – You can access loans up to $250,000 and lines of credit up to $100,000.
  • Terms – Repayment periods range from short 3-month lines of credit to 10-year term loans for major assets.
  • Rate type – Variable rate loans allow borrowing at a low starting rate with potential fluctuations over time. Rigid rates provide consistent predictability.
  • Payment schedule – Make interest-only payments initially, seasonal payments on certain loans, or standard principal and interest installments.
  • Prepayment – Pay off loans early without penalty fees, allowing pay off debt acceleration if cash flow permits.

7. Apply and submit documents

To secure a business loan from Consumer CU, apply for the loan and submit accurate documents. With preparation complete, it’s time to apply for your Consumers CU business loan:

  • Start online application – Visit their website and click “Apply” to begin the application process.
  • Provide accurate details – Carefully enter all your personal and business information across the application sections.
  • Upload documents – Use the secure document uploader to submit all your prepared financial records, tax returns, organizational documents, and any other items.
  • Accept terms – Read and electronically sign the loan disclosures and agreements. Be sure you understand all policies, rates, fees, and obligations before signing.
  • Submit application – After completing all sections fully, submit the application and supporting documents through the portal.
  • Monitor status – Check your online dashboard and emails for application status updates and next steps.
  • Sign final loan agreement – Once you get approval, review and sign the final loan closing documents.

Maintain open communication throughout so you obtain funding quickly.

8. Negotiate respectfully

To earn favorable conditions of the business loan, negotiate if necessary. If your application receives conditional approval from Consumers CU with the loan terms, don’t hesitate to negotiate respectfully.

For example, if the loan amount or duration doesn’t fully meet your needs, politely discuss whether alternatives exist, with support by additional financial information.

If the interest rate or fees seem high unlike market averages, highlight competitive offers and see if they can adjust downward. Keep discussions factual.

You should approach negotiations from an angle of finding optimal outcomes for both parties rather than just maximum personal benefit.

9. Await a lending decision

To obtain a business loan from Consumer CU, patiently await your approval. Once you submit your application, Consumers Credit Union prides itself on providing fast business loan decisions:

  • The underwriting team generally processes applications within just 1-3 business days.
  • They will contact you promptly by phone or email to share the decision and answer any questions.
  • You will receive digital loan documents to sign electronically to finalize terms.
  • Carefully review all policies, interest rates, fees, collateral liens, and repayment schedules before signing.
  • Provide any additional items to allow loan closing and funding disbursement. This may include insurance policies on collateral.

Loan proceeds are quickly sent via ACH to your business checking account once the credit union receives the documents with your signature.

Recap

To get a business loan from Consumers Credit Union, you must first become a member by paying a one-time fee and maintaining a minimum deposit in a savings account. Assess the loan options available, such as term loans, lines of credit, equipment loans, and more. Gather necessary financial documents, including tax returns and balance sheets. Prepare a clear loan purpose and check your eligibility based on revenue, credit score, and time in business. Select loan features that suit your needs, such as loan amounts, terms, rate types, and payment schedules. Apply online, submit your documents, and accept the loan terms. Negotiate if you want to and await a fast lending decision. Once you get approval, disbursement of funds will take place promptly.

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