Credit union: investing in each other's businesses

What is a credit union?

A credit union (in Dutch: kredietunie) is a cooperative in which entrepreneurs work together. Entrepreneurs become members of the credit union, and put money in. That money is used to finance each other's plans. The members determine the credit union's policy together, elect the board, and are joint owners. A credit union has no profit motive and works on the basis of trust and shared interests.

Investment and coaching

A credit union's money comes from its members. All members pay in money. The credit union lends that money to its own members to invest in their business. You pay the loan amount back with interest. In this way, credit union members can invest together. The members share the investment risk. If you borrow from the credit union, you also get support from a coach, who is also a member.

For whom is a credit union interesting?

A credit union often targets business owners in a specific sector or region. Credit unions lend amounts between €50,000 and €500,000. Borrowing through a credit union is interesting if you could also use coaching on business growth and your operations. Each credit union has its own rules for their members and the businesses they finance.

Joining a credit union

Do you want to join a credit union to finance your business plans? These are the steps:

• Find a credit union: Research credit unions in your area and for your sector. Check what conditions they set.
• Complete the application: You can usually fill in an application form on the credit union's website. In it, you explain what your business does, what plans you have, and how much funding you need for it.
• Assessment: The credit union will assess your application and see if you meet their trequirements for membership.
• Pay the membership fee: Is your application approved? Then you must pay a membership fee. This amount varies but is usually between €100 and €1,000. Sometimes you pay a one-off fee, sometimes you pay a membership fee every year. 

Where do you find a credit union?

An overview of credit unions in the Netherlands can be found at the sector organisation: Vereniging Samenwerkende Kredietunies (Collaborating Credit Union Association, in Dutch) and Kredietunie Nederland (in Dutch).

Help with business financing

The Financing Guide helps you find your way around financing. Do you have questions after reading the information? Call the helpline: 088 585 11 11, or ask an expert for advice.

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