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Credit unions are not-for-profit financial institutions with members
being employees of certain specific company, organization, place or
profession. These credit unions are regulated by the members and work
towards providing financial aid and services. They provide insurance,
loans at low interest rates, provide financial planning and advice and
share profits amongst all members and encourage reinvestments. They are
like alternative banks with no shareholders.
Even though a credit union has many advantages associated with it, it
does not allow everyone to be its member. There are certain
disadvantages too associated with it when compared to a Bank. They do
not have nationalized branches, no ATM options and some provide quite
few services. Few of these disadvantages have been overcome by certain
unions like Credit Union Australia which has 24 hrs ATM, Community CPS
Australia which allows anyone to become a member and Teachers Credit
Union which offers a plethora of services to its member and allows them
to be a part of their regulating decisions.
There are other credit unions in Australia like Credit Union SA, Savings
& Loans and My State Financial Credit Union which provides its member an
efficient way to control and manage their finances by putting in a team
effort. A Credit Union is an alternative democratic bank which works
“for its members, by its members.”
Other Resources:
Here is a great site that can help you understand
finance terms
and ideas:
- understand the advantages/disadvantages of different types of finance
- identify what is required for different types of finance e.g. grant,
bank loan, angel or venture capital funding
- see your business from an investor's perspective e.g. what are they
looking for from your business
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