BURLINGTON, Vt.-Northeast CUSO, which is shutting down operations after determining its six owners were ready to pursue member business lending on their own, has offered some advice on what CUs should consider before making the decision to forego a CUSO.
"The decision, of course, has to come from the credit union," said CEO Scott Anderson. "You should determine if you have the right team in place, whether two or 12 in number. You have to be able to say we have proven that on our own we can find good loan relationships in the local market. We have proven we have systems in-house to underwrite and service the loans, and our MBL management team has been around this business long enough to have seen a lot of business loans."
Key in the decision process is confidence that the credit union has strong connections, an understanding of the local business market, and possesses the overall skill, expertise and processes to simply look at business lending as just another line of business.
"Going out on your own does not mean there are no additional steps you have to take, like hiring another person or upgrading your lending platform," added Anderson. "But those are not hard steps to take. Again it's mainly about having the experience and people on board to know you can take it to the next level."