Faith Community United CUSO Eyes Cash Flow Gap
For some small businesses, waiting the 30 to 60 days for a vendor to process an invoice and cut the check can quickly dry up cash flow.
The $12 million Faith Community United Credit Union in Cleveland is looking to fill in that time gap with the launch of a new CUSO.
“Based on $1 million of invoices, that could be $50,000 in fee income a year for the credit union,” he pointed out. “That’s fee income coming in every 30 to 45 days. We’re a $12 million credit union. In order to grow, we need to grow our asset base.”
While Faith Funding gets off the ground, Johnson said the CUSO may look into adding more credit unions down the road that are interested in offering factoring services to their business members.