7 Best Credit Unions for Small Business of 2023 (Bank Accounts Ranked)

Years ago, the only people who would think about joining a credit union were those with student loans. However, things have changed dramatically over recent years.

Nowadays, more and more entrepreneurs are considering credit unions over big-name commercial and online business bank accounts, particularly when it comes to managing their business’s finances. Some of the advantages credit unions provide are hard to obtain anywhere else.

Of course, just because the name of the financial institution has “credit union” in it, doesn’t mean that you should just settle on the first one you come across.

The best credit unions for small business members will offer the right combination of ease-of-use, services, and features.

In this article, I’ll explore the best credit unions for small businesses this year. By the time you finish reading, you’ll know why these institutions are popular with small business owners and entrepreneurs across the nation.

Let’s get right into it.

What are the Best Credit Unions for Small Businesses?

The following is a list of credit unions that stand out and may potentially offer the best services for your business.

1. America First Credit Union.

Best for small businesses that have low to medium volume sales.

America First Credit Union’s Business Checking account is ideal for small business owners who want a high annual percentage yield (APY) account with virtually no maintenance.

With 250 free transactions every month and a $0.15 fee for each transaction beyond that, it’s a no-brainer why small business owners across the country love this institution.

This type of account is perfect for small businesses that need a place to make payroll deposits, pay bills and accept credit card payments from clients.

Key Features:

• Free transactions limit might be enough for small businesses that do not deal with high volume.
• Provide a low transaction fee for those businesses that are scaling.
• Easy to access debit card access along with additional lines of credit as needed.
• Inclusion of a business visa to earn rewards for travel and online transactions.

2. Navy Federal Credit Union.

Best for being a credit union that cares about military vets.

Navy Federal Credit Union has special programs dedicated to business owners that are closely tied to the military and its veterans.

Business checking and savings accounts are built for small businesses and these accounts are great to help small business owners plan for both the present and the future.

The credit cards offered to make it simple to handle business expenses with competitive rates and rewards that will make the whole process profitable for everyone involved.

Key Features:

• Increase your business’ purchasing power with APR as low as 5.9%.
• Earn 1x points per dollar spent in your business.
• You may save up to 15% on qualifying business purchases from participating merchants.

3. Digital Federal Credit Union.

Best for controlling the amount of money your organization spends.

Digital Federal Credit Union offers you various loan options when it comes to getting your small business capital.

With the ability to issue you with a business visa platinum, or a business visa platinum plus, you’ll be able to get unlimited cards from this lender that have different account numbers and credit limits.

This means that you’ll be able to control and manage your finances when it comes to employee spending.

They also have procedures in place if you’d like to buy a business vehicle or even business equipment. All of this can be done without having to deal with lots of paperwork, leading to getting up and running in no time at all.

Key Features:

• Get financing for business auto loans or equipment with procedures that are in accordance with the type of assets you are planning to buy.
• Apply for business credit cards that come with different accounts and limits depending on how much capital you need.
• Use their easy calculator to manage business loans and understand how much you can borrow in your current situation.

4. Blue Federal Credit Union.

Best for getting approved through a simple application process.

Blue Federal Credit Union is great when it comes to security for a commercial loan with lower fees.

Whether you are looking for commercial mortgage loans, vehicle loans, term loans, lines of credit, construction loans, or even equipment loans, you’ll get a loan that is tailored to your business needs.

As the business owner (or even someone in management), it’s easy to get approved for any type of loan through their simple application process.

Through Centennial Lending, which is a lending partner of Blue Federal Credit Union, you’ll be able to get some of the best interest rates possible, helping you reduce the principal payments on any of your loans.

This will make it easy to manage loans that are secured against your assets.

Key Features:

• More than 100 years of combined commercial lending experience so you can rest assured that your business is in good hands.
• Lending experts will make a difference when it comes to getting a commercial loan that is tailored to your business needs.
• Flexibility and competitive terms are a must when it comes to business loans and that’s something that Blue Federal Credit Union can give you.

5. First Tech Credit Union.

Best for having a business account with no monthly charges.

First Tech Credit Union charges no account analysis fee which means that you’ll be able to set up a business checking account for your small business, right from the first time you open an account.

There are also no monthly fees involved, ensuring that more money stays in your account month after month.

Perfect for business owners that own a small business, do not need big cash handling ability, and can afford to keep a balance of at least $1000 every day, the Simple Business Checking account is a great alternative to consider and one that you’ll be able to use for various purposes.

Key Features:

• No monthly fees if the balance stays above $1000, which means that you’ll be able to save some money when you open a business checking account with First Tech Credit Union.
• Fraud protection is set in place so you can rest assured that your business assets are secure.
• Rewards points are given for certain activities and purchases made through your account. These points can be redeemed to get a cash deposit into your business checking account.
• Free online deposits and bill paying make it easy for you to save time as well as money.

6. CreditUnion1.

Best for helping different types of businesses achieve their goals.

CreditUnion1 offers various types of programs for entrepreneurs, including business checking accounts, savings, credit cards, and merchant services.

With their business checking account, you can accept payments from customers at up to a 95% reduction of normal costs.

With access to close to 30,000 ATMs as well as 5000+ branches available for your every need, CreditUnion1 will provide your small business with the boost it needs to manage and achieve its financial goals.

Key Features:

• Top processing power is allocated when it comes to credit card acceptance, which means that you’ll be able to be up and running quickly.
• Their decreased fees policy when accepting credit cards is one of the most popular features that small business owners love, helping them to reduce expenses.
• Receive the most transparent pricing of any bank or credit union from the very beginning.

7. Consumers Credit Union.

Best for having a no-nonsense, no-monthly fee account.

Consumers Credit Union offers several programs designed with small businesses in mind. Their Freedom Business Checking account comes with 100 free transactions. In addition, there is no need for a minimum balance to avoid a monthly fee.

Other programs including the Power Business Checking and the Choice Commercial Checking have more useful features (including more free transactions) that allow you to keep up with your business demands.

The fact that there are no monthly maintenance fees will allow you to rest assured that your business’s funds will be safe and available when needed.

Key Features:

• No minimum balance is needed on their starter program which means that you’ll be able to start your business checking account with them, even if you don’t have a lot of funds available.
• Secure online business banking will allow you to set up and manage various aspects of your business from anywhere while having peace of mind.
• A straightforward fee structure means that you’ll be able to control your account’s expenses effectively.
• You can choose between different types of checks for your small business depending on your specific needs.

Other credit unions not mentioned in this post that you might want to consider include the National Credit Union Administration and the Tech Federal Credit Union.

What are Credit Unions for Small Businesses?

A credit union business account is a type of account that you can open as a business owner, with the only difference being that it’s not managed by a bank. Credit unions are one of those alternative ways to deal with your financial needs as a business owner and make sure that you get all the benefits and features needed for your business to thrive.

Credit unions usually offer different types of small business checking accounts, savings accounts, loans, credit cards, or business services to help you do more with your small business finances.

They may even provide other types of additional services including 401k plans, commercial real estate loan financing, and more.

In short, having a credit union account for your small business will allow you to take full control over how you manage your business’s finances while saving money in the process.

Features to look for when choosing the top credit union business account

The following are some of the most important features you should consider when looking for a credit union account.

Expenses involved with the account

One of the best features that you’ll find in most credit union business accounts is their free checking account.

Even if other types of checking accounts may be cheaper on paper, choose accounts that require no minimum balance fees along with no monthly maintenance fees. Both of these ensure that your business will save plenty of money month after month.

Typically, the only thing that’s required from you is one form of direct deposit or ACH transfer each month and then you can enjoy all the benefits.

Business savings accounts

If you want to ensure that your enterprise is always profitable, the best place to start is by setting aside some money for future investments.

Each type of account comes with different benefits and risks but, overall, the best way to make sure that your business’s funds are safe and ready when needed is by simply having an adequate amount of money available for this purpose.

A business savings account may come with additional benefits that are not found in an ordinary savings account.

For example, the interest rates may be higher and your deposits will also be insured by the National Credit Union Association, which is one of the top credit unions available for small businesses.

Business savings account at a good credit union allows you to take full control over how your funds are managed while still making sure that they are safe.

Money market savings accounts

If you’d like to earn some more profit on your business, then a money market account may be the solution you need. Unlike other bank types of savings accounts, these types of accounts allow you to access all your funds at any time without penalty fees.

However, they also usually require a higher minimum deposit (than other types of accounts) while featuring relatively higher interest rates. If you’re OK with this trade-off, then this type of account with a credit union might be something to consider.

Mobile banking

You can always access your credit union business checking online but having the option to use various mobile apps is always nice especially when dealing with common tasks such as paying bills or managing cash flows.

Some of the best business checking accounts will offer you some mobile banking apps that are easy to use on smartphones or tablets. This will allow you to manage your funds from anywhere at any time with ease.

Small business loans

Some credit unions have small business loan programs (similar to those offered by the small business administration – a.k.a. SBA loans) that are provided for members of their network.

The benefits of using these types of loans include certain tax exemptions and low-interest rates that can be paid back over an extended period. While there are plenty of other financing options out there, it is always better to have a backup option in case your cash needs are greater than expected.

Just ensure that the loans you plan on taking are regulated by the NCUA, ensuring that you have a safety net in case things go bad.

Member discounts

Since credit unions are available to various groups of people, most of them will offer discounts and other benefits that may be of particular interest to you.

For example, they may provide certain checking account perks or even special deals and benefits at related businesses that provide particular services.

Having access to such promotions is always a nice bonus especially when it comes to improved service quality, which means that your personal banking experience can be greatly enhanced.

Overdraft fees

Overdraft fees are considered one of the biggest problems for small business owners. In some cases, these charges can be extremely high and you may end up spending a lot more than you have initially planned on doing.

When using a business checking account at a good credit union, you will not have to worry about overdraft fees since they simply won’t occur with your balance automatically refilling itself if necessary.

However, it is still important for you to always keep an adequate amount of money in your account just in case.

In some situations, however, there may be some other additional fees that you need to pay. For example, those who often exceed their monthly or daily limits may be required to pay certain transaction fee amounts.

These amounts can quickly add up so understanding the terms you’re agreeing to when signing on the dotted line is important.

Online banking security

When choosing the right business bank account for your needs, you always need to consider whether or not the service provided is secure.

Though credit unions tend to do their best to keep all of your money safe, there have been situations where they failed in the past. As a result of this, people have lost some (or all) of their funds.

Most credit unions will usually offer top-notch security features that will allow you to use various their online features with ease while making sure that your personal information is protected at all times.

Credit unions vs traditional banks

In general, credit unions have a lot of great things to offer. For example, they tend to be more flexible in terms of services and benefits. In addition, they also provide convenient mobile banking options that you can use from anywhere, and at any time, with ease.

Even though traditional banks may seem like a safer option when it comes to your money, the truth is that they may still fail.

Nowadays there are plenty of credit unions available but not all of them can guarantee a high level of service quality nor do they always have some special perks up their sleeve.

By being a member of credit unions, you may also have access to other promotions and deals that can be extremely beneficial for your needs.

For example, some of these unions offer free checking accounts or even interest-free loans for certain situations. There are plenty of offers out there that allow members to save money each year while also getting better services at the same time.

Credit unions usually have impressive customer service ratings, which is something you need to take into consideration when making a choice. Also, they tend to prioritize long-term relationships with their members over any other kind of business decisions or changes.

Credit Unions for Small Business – FAQs

Do nonprofit organizations qualify for help from credit unions?

Most nonprofit organizations will qualify for help from credit unions. This includes the use of credit cards, which are pretty much the same as regular credit cards and are reported to the main major bureaus.

In addition to nonprofit organizations, there are also startup business credit cards for those that are pretty new in business. These credit cards can give a well-needed boost to these organizations as things start to scale.

What is the importance of the right credit score when it comes to credit union eligibility?

Your credit score is usually the main thing that will determine whether or not you will be able to get a certain particular type of loan from a credit union.

If your score is high enough, you may qualify for better rates and lower fees while also having a chance at receiving a larger line of credit.

What is credit card routing?

Routing numbers are used to uniquely identify financial institutions that are associated with the production of credit cards, ACH’s and other electronic banking transactions.

It is important because it helps networks process your transactions, find your account, and make sure you have enough money in there to make a purchase when needed.

What disclosures should I receive before applying for a small business credit card?

Small business credit cards must come with several different disclosures that can help you understand what you are signing up for.

These may include but are not limited to:

• the interest rates on purchases and cash advances
• certain types of fees charged by the bank
• your rights as a consumer
• and much more.

What are business lines of credit?

Business lines of credit, or LOC’s, allow you to borrow a certain amount of money on an ongoing basis. Your business is then expected to pay back this sum each month, with interest on top of it.

Wrap Up.

Overall, credit unions may be a great choice for those who wish to avoid pricey bank fees and maximize their savings. As discussed above, these institutions offer plenty of great perks that can be extremely useful for business owners.

To recap the top credit unions for small businesses are:

• America First Credit Union: Best for small businesses that have low to medium volume sales.
• Navy Federal Credit Union: Best for being a credit union that cares about military vets.
• Digital Federal Credit Union: Best for controlling the amount of money your organization spends.
• Blue Federal Credit Union: Best for getting approved through a simple application process.
• First Tech Credit Union: Best for having a business account with no monthly charges.
• CreditUnion1: Best for helping different types of businesses achieve their goals.
• Consumers Credit Union: Best for having a no-nonsense, no-monthly fee account.

By understanding exactly what a credit union can offer your small business, you’ll be able to make the right choice in terms of your financial needs.

What do you think about credit unions? Would you recommend them to small businesses? Let me know in the comment section below.

Further reading on AdamEnfroy.com: Thinking about making moves with an online business? Here are the best places to buy and sell an online business right now. In addition, if you’re in the process of creating a business plan, here are the top business plan software and tools to consider.