Are you an entrepreneur with an exciting business idea, and do you need financing to move forward? Do you own and operate an established business, and are you planning to expand your operations, purchase new equipment, or invest in commercial real estate? Whatever your financing needs may be, Addition Financial Credit Union might be the right small business loan lender to help expand your business.
Addition Financial Credit Union — which almost exclusively goes by the name Addition Financial — is a state chartered credit union which is federally insured by the National Credit Union Association. It is headquartered in Lake Mary, Florida, and serves members in a growing number of Florida counties. This credit union currently has more than 160,000 members, and manages more than $2.2 billion in assets, meaning Addition Financial is able to provide significant lending capacity to help your business grow.
The name Addition Financial Credit Union is fairly new, as of 2019, but this credit union has a long and impressive history. First founded in 1937 by a group of teachers who were tired of having to rely on mainstream banks, it was initially called Orange County Teachers Federal Credit Union, and its membership was limited to local teachers and educators.
When it acquired a community charter, enabling the credit union to serve members based on their location in Florida, its name was changed to Central Florida Educators Federal Credit Union and later shortened to CFE. In more recent years, Addition Financial made several impressive acquisitions, among other things becoming the first credit union to purchase a bank — Fidelity Bank of Florida. Its name was changed to Addition Financial Credit Union at that same time.
Addition Financial currently operates a total of 26 convenient branch locations, and offers secure and modern online and mobile banking options to the twenty-first century consumer. As a member of both the Presto! and Publix shared networks, Addition Financial is able to offer access to tens of thousands of surcharge free ATMs through the Southeast.
As a Florida business owner, you will discover that Addition Financial is a financial institution with a difference. As a non profit and member owned financial cooperative, Addition Financial is able to offer more competitive rates than a mainstream bank could. Addition Financial also, however, describes itself as a "financial partner and personal success coach". The result? Addition Financial Credit Union is more than a lender. It's also a part of the same community within which you are building your own success, and that's yet another reason to choose Addition Financial as your financial partner.
“If you qualify to join, with Addition Financial your small business will potentially gain access to a range of affordable commercial loan solutions, and a variety of business banking products and services”
What Does Addition Financial Credit Union Offer?
Addition Financial can best be described as a full service credit union. If you qualify to join, your small business will potentially gain access not just to a range of affordable commercial loan solutions, but also to a variety of business banking products and services.
A Broad Variety of Business Loan Products
Addition Financial offers a wide range of business lending options to business owners in Central Florida — and because the credit union serves the same communities you work in, its commercial lending team has gained a deep understanding of the local economic environment. The commercial loan options available from Addition Financial are tailored to your unique needs, whether you need a small business loan or have something more ambitious in mind. They include:
- Business lines of credit. Whether your business faces unforeseen expenses, deals with seasonal low points, or simply needs cash on hand as working capital, lines of credit represent the most flexible financing option. Addition Financial offers business lines of credit ranging from $10,000 to $100,000, depending on your needs and financial standing, and you will only ever have to pay interest on the funds you are actively borrowing.
- Business term loans. Should you desire more clarity, Addition Financial's business term loans may be a better option for your business. These loans have a fixed term (and fixed interest rates you can count on, too) and may be secured or unsecured. They are used to fund large investments. Unsecured small business term loans can have loan amounts of $5,000 to $100,000, while secured loans may be offered for amounts of $5,000 and above.
- Business vehicle loans. Addition Financial can provide commercial auto loans at competitive rates, which may be used to finance the acquisition of a wide variety of new and used commercial vehicles, including company cars, vans, and light trucks. Up to 100% of the vehicle of a vehicle can be covered by these loans, and Addition Financial offers terms of up to 72 months.
- Commercial equipment loans. Whether you are a new startup, you are planning to expand your business, or you need to replace old equipment, Addition Financial offers commercial equipment loans with loan to value ratios of up to 80 percent. Amounts between $5,000 and $1 million are available, depending on your financial standing, and Addition Financial offers predictable fixed interest rates. These loans are automatically secured — by the equipment you fund with them.
- Business credit cards. Finally, Addition Financial offers Visa Business Rewards credit cards to its business members. These cards earn rewards points for every dollar you spend and have no annual fee, balance transfer fee, or cash advance fee.
The business loans that Addition Financial provides are especially designed to help smaller Florida businesses grow and thrive. A wide range of loan amounts are available through Addition Financial, ranging from just $5,000 to $1 million, and depending on the type of commercial loan you apply for, the repayment terms are flexible and varied.
Favorable Loan Terms
Addition Financial offers favorable and flexible loan terms on all of its business lending options. The precise details depend on the loan in question. The credit union's business vehicle loans for fleet acquisitions have terms of up to six years, for instance, while its term and equipment loans have flexible terms tailored to your unique circumstances.
Addition Financial is able to offer attractive, competitive rates that would not be available from most traditional banking institutions. That is because, as a member, shareholder, and part owner of the credit union, your business becomes Addition Financial's mission — and credit unions are non profit financial cooperatives that solely exist to propel their members to success. The precise rates you will be offered depend on factors such as your business credit score, annual revenue and profit, how long you have been in business, and your industry.
A Full Suite of Business Banking Solutions
By joining Addition Financial, Florida entrepreneurs and business owners will be able to conduct all of their essential day to day banking transactions through the credit union, choosing from a wide range of business banking accounts. No matter who you are and what your needs are, Addition Financial has the account you need. Options include:
- Business savings accounts for small and medium sized businesses. These simultaneously act as share savings accounts — the account used to establish your company as a member (and thereby part owner) of Addition Financial. Earn dividends on balances of $50 or more with these flexible accounts.
- Business money market accounts from Addition Financial Credit union feature tiered dividends depending on your balance, and allow you to put your money to work while still being able to make multiple withdrawals every month.
- Business essential checking accounts are designed for small businesses, and have an opening balance of $100. If you are able to maintain an average balance of $10,000 or above, no monthly service fees are charged, and your first 100 monthly transactions are free of charge.
- Business enterprise checking accounts from Addition Financial are intended to serve the needs of larger and growing ventures, and by maintaining a balance of $25,000 or more, this account will start to earn handsome dividends. Your first 250 monthly transactions are free of charge.
- Business access checking accounts are meant for very small businesses and new startups. There is no minimum balance, no monthly service fee, and you only need to pledge $50 to open this account. You will gain access to 25 complimentary transactions.
Those business owners that also need additional services, such as P2P transfers, payroll services, merchant services including point of sale and ecommerce solutions, and contactless payment with Tap to Pay, can explore the options with Addition Financial's business department to find the best solution for their needs.
Addition Financial has grown immensely over the years, acquiring several credit unions and a bank in recent times. The result? Members have access to 26 convenient branch locations in Central Florida, and as part of shared networks, Addition Financial is also able to offer access to shared branches and surcharge free ATMs far beyond the Florida area it serves.
This may matter a great deal, depending on the nature of your business — but you will likely wish to take full advantage of Addition Financial's secure, modern, and user friendly online banking portal as well.
Excellent Customer Service and Experience
Credit unions offer great rates and flexible terms, and that's one reason that entrepreneurs and business owners who need commercial financing should never overlook local credit unions. That's not the only perk, however. Credit unions were founded on a "people helping people" principle, and that is still expressed today, in the form of personal attention and great customer service.
Addition Financial is a local Florida credit union that doesn't just have decades of experience in running a business, but also decades of experience in expanding and thriving. When you apply for a small business loan from Addition Financial, you will gain the benefit of this knowledge.
“Businesses operating in one of the several counties in the state of Florida are eligible to become members of Addition Financial”
Who Can Apply for a Commercial Loan from Addition Financial?
Any business member of Addition Financial Credit Union can apply for a business loan from this credit union — so unless you have already joined, that's your first step. Each credit union has a defined field of membership, which can sometimes have a complex structure. Because Addition Financial has a community charter, it's easy to find out whether your business is eligible to join this credit union — you simply have to operate in one of the Florida counties that Addition Financial serves.
These are as follows — Orange, Osceola, Seminole, Lake, Alachua, Brevard, Duval, Flagler, Hernando, Highlands, Hillsborough, Indian River, Manatee, Marion, Martin, Okeechobee, Pasco, Pinellas, Polk, Sarasota, St. Johns, St. Lucie, Sumter, and Volusia County.
Businesses operating in one of these counties in the state of Florida are eligible to become members of Addition Financial, and the same holds true for anyone who lives, works, attends school, or has graduated from one of the educational institutions in one of these counties. You also become eligible for membership with Addition Financial Credit Union if one of your close relatives has already joined.
In order to join, you will have to complete an application, over the course of which Addition Financial will ask for the following documentation and information:
- Your social security number.
- A valid government issued ID, such as a driver's license.
- Proof of your current (business) address to prove your eligibility.
- You will need to pledge $5 to open a share savings account with Addition Financial, as well as paying a one off $10 lifetime membership fee. In order to fund the new account, you will need to provide your current credit card details or bank routing number.
Once you have completed this process, and are a member of Addition Financial, you can apply for any of the business loan options that Addition Financial offers.
What Types of Business Loans Does Addition Financial Offer?
The small business loan products that Addition Financial provides to members that qualify focus on helping small businesses as they start out, expand, and thrive. While a fairly wide range of loan amounts are on offer — between $5,000 and $1 million, to be precise — larger established ventures will likely not find the commercial loan solutions they need in partnering with Addition Financial. The following is an overview of the business lending options that Addition Financial offers.
Business Lines of Credit From Addition Financial
Addition Financial Credit Union offers flexible lines of credits, for amounts that may range from $10,000 to $100,000 depending on your preferences and eligibility. This flexible form of financing can allow you to gain access to a semi permanent form of working capital, making it possible to purchase inventory at favorable rates, to fund smaller expenses like office furniture, or to manage cash flow fluctuations and seasonal low points, among other uses.
These lines of credit feature flexible repayment terms, and you only need to pay interest on the amount you are actively borrowing. Once you have repaid the debt, you can start all over again. Addition Financial offers competitive rates, and you may make withdrawals at any branch or via online banking.
Business Term Loans From Addition Financial
Business term loans are generally used to finance fixed assets or to serve as working capital. These loans will provide your business with a lump sum at the outset of the repayment term, after which you can begin making regular repayments with a fixed, predictable, interest rate that allows you to plan for the future.
Addition Financial offers both secured and unsecured business term loans. Secured business term loans are available starting at $5,000, while unsecured loans are offered at for a minimum of $5,000 and may go up to $100,000, depending on the financial standing and credit history of your business.
These loans have competitive rates and flexible terms that are subject to discussion with Addition Financial's commercial lending team.
Business Vehicle Loans From Addition Financial
Addition Financial can provide flexible financing for new and used cars, vans, and light trucks — and unlike many financial institutions, this credit union can fund 100 percent of the purchase price not just in the case of new commercial vehicles, but for used vehicles as well. Should your business be in need of an entire fleet of commercial vehicles, Addition Financial offers fleet financing, too. Single vehicle loans have terms of up to 72 months, while fleet loans have terms of up to six years.
Commercial Equipment Loans
Are you planning to acquire new business equipment, or do you need to replace or upgrade your existing equipment? No matter what line of work you are in, Addition Financial offers flexible commercial equipment loans. You may just need to borrow $5,000 to get started with your DBA, or you may have much larger needs. Addition Financial offers commercial equipment loans for amounts up to $1 million.
A loan to value ratio of 80 percent is available, and the equipment you purchase with your commercial equipment loan from Addition Financial acts as built in collateral. The commercial equipment loans that Addition Financial provides have predictable fixed interest rates.
“Addition Financial offers a selection of business loans that are primarily designed to help small businesses grow, or to get new startups off the ground”
What Are the Pros and Cons of Partnering with Addition Financial for a Business Loan?
Addition Financial offers a selection of business loans that are primarily designed to help small businesses grow, or to get new startups off the ground. It does so well, and with competitive rates, so if that describes you, Addition Financial can be an excellent financial partner. Addition Financial does not, on the other hand, provide larger loan amounts that established and already thriving businesses may need. Commercial real estate loans are not part of Addition Financial's lending program, and the credit union does not work with the Small Business Administration to provide SBA loans, either. Both may be a reason to keep looking for another credit union.
How Do You Qualify for a Business Loan from Addition Financial?
Addition Financial has laid the steps required to qualify for any of the business loans that it offers out succinctly, and the following is an overview of the process.
1. Become a Member of Addition Financial
Addition Financial can only offer business loans to current members. Review your eligibility if you are not already a member, and join if you can and wish to.
2. Apply for a Business Loan
Business members of Addition Financial can apply for the commercial financing they need by visiting their nearest or preferred Addition Financial branch in person and talking with a commercial lending specialist.
You will be asked to complete a business loan application form, and should submit the following documentation:
- Business financial statements — Addition Financial may ask to see financial statements for the past two or three years, depending on the loan amount you are requesting. In some cases, you will be asked for an interim financial statement as well.
- Personal financial statements should be provided by individuals serving as principals or guarantors on the loan. Again, these should date back two or three years, dependent on the loan amount.
- Business tax returns, dating back two or three years. These may include both Federal and State tax returns.
- Personal tax returns should be provided by those acting as principals or guarantors.
- Your business' formation documents — such as Articles of Organization, Statements of Partnership Authority, or Operating Agreements, depending on the structure of your business — should be submitted to Addition Financial, along with relevant supplementary documentation.
- Proof of collateral must be offered if your business is applying for a secured loan.
- A business plan plays an essential role in obtaining financing for new startups.
Addition Financial will review your business credit score — which would ideally be between 80 and 100 on the D&B PAYDEX — and the personal credit scores of principals and guarantors. In this case, Addition Financial will want to see a FICO score of 670 or higher. Your annual revenue and profits will be assessed, alongside your debt to income ratio.
Should your venture prove to be in good financial standing, this will qualify you for the small business loan that you requested. While credit unions typically offer fast turnover, it may take several weeks until you gain access to the small business financing you applied for.