Understanding the Needs of a Small Business Owner (Series): Cash Management

In this series, we examine small business owners’ priorities and how credit unions that offer business loans can better serve them. This week’s topic is Cash Management.


There are 1,795 credit unions that offer member business loans and 118 that plan on implementing a member business lending program within the first 6 months of 2006. To be successful in this lending area, it is important that credit unions have a thorough understanding of the challenges that their members face as small business owners.

One key priority for small business owners is effective and easy cash management. In January 2006, Visa conducted their Small Business Cash Management Survey of small business owners. Based on 486 responses, here are what small business owners state are the most challenging aspects of the cash flow process to manage:


Source: Visa Small Business Cash Management Survey, 2006

Visa’s solution to this issue for small business owners is to provide payment cards. Payment cards are very efficient when it comes to making payments, receiving payments and moving funds.

To help their own members that are small business owners, credit unions should consider offering cash management solutions as well as other business services to assist members that currently have a business loan and attract new members who may be looking for a loan and other services in order to start up a small business. Some of these other services include:

  • Business Debit & Credit Cards
  • Online Banking/BillPay
  • Lockboxes
  • Sweep Accounts
  • Payroll Services

Stay tuned for future articles on other needs small business owners have and how credit unions can help. Also, to learn more about other ways to help members that own small businesses, check out our webinar on Going Beyond the Business Loan: Providing Business Services to Your Members