Lake Michigan Credit Union business loans review “2018” | finder.com

Lake Michigan Credit Union business loans review

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Small-dollar financing with no fees and rates from 5% to 7%.

Lake Michigan Credit Union could be a great place for your business to find funding for a small project. It caps rates at 7% APR, has no minimum loan amount and doesn’t charge any fees. Plus, you can become a member even if you don’t live in a state with branches by donating to charity. But you might want to look elsewhere if you’re a startup or have bad credit.
Product NameLake Michigan Credit Union Business Term Loans
Min Loan Amountnone
Max. Loan Amount$50,000
APR5% to 7%
Interest Rate TypeFixed
Maximum Loan Term20 years
RequirementsPersonal credit score of 700+, established business, willing to become a member
  • Have a personal credit score of at least 700
  • Be an established business
  • Be a member or willing to become a member of Lake Michigan Credit Union

First, do I qualify?

To be eligible for a business loan from Lake Michigan Credit Union, you must:

  • Have a personal credit score of at least 700
  • Be an established business
  • Be a member or willing to become a member of Lake Michigan Credit Union

What is Lake Michigan Credit Union?

Lake Michigan Credit Union is a nonprofit lender that offers a wide range of personal and business services. Its business term loans are secured, meaning they need to be backed by collateral.

There’s no minimum to how much your business can borrow, though they max out at $50,000. Lake Michigan doesn’t charge any fees, and APRs range from 5% to 7%. Your business can take as long as 20 year(s) to pay off the loan — though you might want to avoid such a long loan term to save on interest.

What makes Lake Michigan Credit Union business loans unique?

Lake Michigan Credit Union has some of the lowest rates out there, especially for a business loan. There’s also no limit to how little your business can borrow, making it ideal for businesses that need funding for smaller expenses.

Like most credit unions, it doesn’t have many eligibility requirements other than strong personal credit. But it doesn’t lend to startups, even though there’s no minimum requirement for time in business.

What are the benefits of a Lake Michigan Credit Union business loan?

  • Competitive rates. With APRs ranging from 5% to 7%, Lake Michigan offers some of the lowest rates out there for a small business loan.
  • No origination fee. There’s no fee associated with applying for a business loan with Lake Michigan Credit Union, though you might have to pay a late fee if you fall behind on repayments.
  • No minimum amount. Your business can borrow only as much as it needs — as long as it’s under $50,000.
  • Easy-to-use website. Lake Michigan Credit Union’s website has a lot of features that many credit unions don’t, including live chat and easily navigable menus.

What should I watch out for?

  • Not for startups. Your business can’t be in its startup phase if it wants to get financing from Lake Michigan Credit Union.
  • Good credit required. Business owners must have a personal credit score of 700 or higher to be eligible for a loan.
  • Can’t apply online. You have to a call a representative to get started on your application.
  • $50,000 maximum. Lake Michigan Credit Union’s business loans might not be ideal for small businesses with large projects on the horizon.

Compare more business loan providers

Rates last updated November 19th, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Credibly Business Loans
Funding to cover business expenses with daily or weekly repayments.
$5,000
$250,000
500+ personal credit score, 6+ months in business, $15,000+ average monthly deposits
National Funding Small Business Loans
Working capital loans and equipment financing, some high-risk industries may be eligible.
$5,000
$500,000
Be in business at least one year and make at least $100,000 in annual sales. Other loan types have additional requirements.
Lendio Business Loan Marketplace
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
$500
$5,000,000
Must operate a business in the US or Canada, have a business bank account and have a personal credit score of 560+.
LendingClub Business Loans
With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
$5,000
$300,000
12+ months in business, $50,000+ in annual sales, no bankruptcies or tax liens, at least 20% ownership of the business, fair personal credit score or better
OnDeck Small Business Loans
A leading online business lender offering flexible financing at competitive fixed rates.
$5,000
$500,000
500+ personal credit score, 1+ years in business, $100,000+ annual revenue
Fora Financial Business Loans
No minimum credit score requirement and early repayment discounts for qualifying borrowers.
$5,000
$500,000
Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
LendingTree Business Loans
Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
Varies by lender and type of financing
Varies by lender and type of financing
Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.

Compare up to 4 providers

What do customers say about Lake Michigan Credit Union?

Lake Michigan Credit Union doesn’t do well when it comes to online reviews, though there aren’t many. While it’s accredited by the Better Business Bureau (BBB) and earns an A+ rating based on factors like transparency, customers tell another story. Four customers left mostly negative reviews on its BBB page and 17 filed complaints against it. It doesn’t have a Trustpilot page, though several of its branches are reviewed on Yelp.

The main problem? How long it takes to apply for financing — one customer even eventually withdrew their applications out of frustration. A few also complained about the quality of customer service, a common problem with credit unions.

How do I apply?

Unfortunately, Lake Michigan Credit Union doesn’t have an online application. Instead, you need to call its commercial lending team at 800-242-9790. If they think you’re a good fit after discussing your business’s financing needs, you’ll get instructions for how to apply. But before you start dialing, double-check that you’re eligible.

Eligibility requirements

You must have a personal credit score of 700, own an established business and be willing to become a business member to get a loan from Lake Michigan Credit Union. Your business might also have to meet revenue requirements, depending on your industry.

If you’re not already a business member, you can join while you apply — a representative can walk you through the business membership application. While Lake Michigan Credit Union only has branches in Michigan and Florida, anyone can become a member by making a $5 contribution to the ALS Foundation.

What documents do I need to apply?

Lake Michigan Credit Union doesn’t require any specific documents when you apply for a loan — it depends on your business’s specific situation. However, it’s common for business lenders to ask to see at least three months of personal and business bank statements, tax returns, balance sheets and financial projections.

Other types of business loans from Lake Michigan Credit Union

This credit union doesn’t just offer secured term loans. Your business can also apply for the following types of financing:

  • Lines of credit. Get access to funds when your business needs to cover ongoing working capital expenses.
  • Real estate loans. Finance a commercial real estate purchase backed by the property your business is buying.
  • SBA loans. Small businesses can apply for SBA 7(a) and CDC/504 loans through Lake Michigan Credit Union.

I got a business loan from Lake Michigan Credit Union. Now what?

Ask about your repayment options. If possible, sign up for autopay so you don’t have to take time out of your work schedule to make payments each month. Keep track of your business bank account and loan balance. If you have any questions or notice anything off, reach out to customer service as soon as you can.

Bottom line

Lake Michigan Credit Union’s business loans could be a great resource for small, established businesses looking for funds to cover a small expense. Its rates are lower than even some SBA loans, though you can’t borrow more than $50,000 and good credit is a must.

To learn how this credit union stacks up to other lenders, read our business loans guide.

Frequently asked questions

Anna Serio

Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

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