Can credit unions really compete with the large commercial banks when it comes to commercial lending?
Yes! First of all, the consolidation in the banking industry has negatively impacted many small business owners. Where small business owners once had a relationship with a smaller community bank and loan officer, too often they are now just a number at a large institution with no one assigned to their account. For these small business owners, the relationship is absent in “relationship banking”. Second, many commercial banks are not aggressively seeking the smaller commercial real estate loans (under $1 million) or the myriad of equipment loans that small business owners require. This leaves a lot of opportunity for credit unions in the business lending marketplace.
