By Lisa Hochgraf
I've had two CU CEOs tell me in recent weeks that doing business lending doesn't make sense for credit unions. I have notes about this kind of lending being "too far outside of credit unions' exertise" and "requiring the hiring of lending officers with a philosophy more like banks" and "too risky for the potential payback" and "not applicable to serving the majority of members."
I've always thought business lending was a way to deepen relationships with members who run small businesses, that expertise could be gained by attending such programs as CUES' School of Business Lending or hiring a vendor that's been checked out by thorough due diligence and that some hires from the banking world could be converted to the CU way of thinking pretty easily. But maybe I've missed the boat.
Please clue me in. Has been anyone gotten back out of business lending after getting in? Is anyone avoiding making an entry for the reasons I've noted--or other reasons?
Lisa Hochgraf is a CUES editor.
