Small Business Loan Bracketology Final: Credit Unions vs ACH

1 min read • Mar 27, 2015 • Erik Larson

The final round features two great options with higher approval ratings than their other division competitors. ACH comes in with faster funding time frames and flexible requirements. Credit Unions bring a community focus with lower rates and longer terms.

Remember, we’re seeing who has the best small business loan option for a restaurant with one year in operation, an average of $20,000 in monthly revenue and good credit. This business is looking for $50,000 for working capital and needs the funds within 3 weeks.

Final: ACH wins on free-throws in the final minutes! Even though Credit Unions focus on their community, they still have to protect
their members’ deposits and answer to regulations. This means that they are reluctant to take on loans they view as risky such as businesses with less than three years in operations. ACH is able to get the funds within the 3 week funding requirement. In the end our restaurateur is the real winner as they grow their business with the new financing.

Tune in next week as we break down the entire tournament.

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For Wednesday’s game, check out Asset Loans vs. ACH.


Erik Larson

Erik Larson frequently writes for Lendio about SEO, Digital Marketing, Social Media Marketing, Business Loans, and whatever else strikes his fancy. He can be found on Google+ and Twitter.