FAQ

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.

Will Octant assist in the planning and implementation of a Member Business Lending (MBL) Program?

Octant will work closely with the credit union to ensure a successful Member Business Lending program is formulated and implemented. From the development of its credit policy to the training of its employees, Octant will be with you every step of the way.

How long does it take to implement a Member Business Lending Program?

The typical implementation takes 1 to 3 months.

What other services does the credit union need to provide to support a Member Business Lending initiative?

Business deposit accounts (checking and savings) are required for your business member. To facilitate deposits, a secure "night deposit" box should also be available. In addition, the credit union will want to offer business debit cards and on-line banking to improve access and compete effectively as a business banking services provider. For working capital requests, business credit cards provide an easily managed solution for both the credit union and its member.

Will the credit union need to hire a business development officer to represent the credit union’s MBL program?

No, that is not a requirement. However, the best answer to this question is derived from the MBL growth goals of the credit union. If its growth goals are aggressive, then a business development officer is required. If its goals are more conservative, then the MBL responsibilities may be added to an existing employee's job description.

Will Octant support our marketing efforts of a Member Business Lending Program?

Octant provides a free marketing CD that can be customized to market the program. Some of our clients, however, have elected to utilize their in-house marketing department or hire a firm to develop the necessary collateral to support an MBL program.