4 Keys to Member Business Loan Success

man looking at business loan form on computer screen
James Lenz Photo
Professional Development Manager

2 minutes

The CUES Podcast Episode 51 show notes

Why do credit unions want to compete in the small business banking landscape?

For one, the average credit union business loan size ($290,000) is larger than the average consumer loan and even some mortgages. And two, the fee income on business deposit accounts can be very attractive.

“Business relationships are significantly more profitable than the average consumer relationship,” said Jim Devine, chairman and CEO of Hipereon, on the CUES Podcast Episode 51

Most likely your credit union has members who are small-business owners. For many credit unions, 5-15 percent of members own a small business, Devine said.

How can credit unions compete in the small-business banking landscape?  

“Arming yourself with educated, better-prepared people is your best competitive advantage,” said Bob Hogan, president/COO of Hipereon.

Devine and Hogan are small-business experts, with more than 35 years spent in business banking and 15 years helping credit unions better serve their small business markets. Plus, they have both owned several businesses themselves, so they are able to bring the business owner perspective to their work. The bring this experience and expertise to the CUES School of Business Lending.

There are four keys to building a success member business program. You need:

  1. Qualified, well-trained lenders. Create a strong credit culture that generates safe and sound loans.
  2. Products and services that the market wants. The typical small business owner wants help and access to credit.
  3. A well-structured, regularly followed set of administration policies and procedures. Credit unions need to continually monitor business loans to make sure they stay at the same quality as the day you booked them.
  4. To identify your business members. Most business lending in the credit union world is generated inward, where the member comes to you. But Devine and Hogan believe it needs to be outward, where the credit union strategically identifies the members it wants to serve.

Hipereon recently developed the Business Knowledge Center, a website that includes a variety of tools for business owners to monitor and analyze their business. Credit unions can work with Devine and Hogan to offer this service to their business members.

“Jim and I are very staunch small-business advocates and as such we believe in making sure small-business owners get the credit they deserve,” Hogan said.

Listen to my interview with Jim Devine and Bob Hogan.
The CUES podcast is an audio program hosted by James Lenz, CUES professional development manager. James talks to credit union and cross-industry experts for their perspectives on trends and topics that matter to you.

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