For those credit unions that have been able to obtain a line from a bank, the annual cost may be between ½ and 1% of the line size, with additional fees and interest if the line was accessed. Assuming a $10 million line of credit, the annual cost at a bank could be $50 to $100 thousand. Consider those numbers versus $0 at Alloya.
Collectively, Alloya members have over $6 billion in available Advised Lines of Credit. At 50 basis points – that translates to over $30 million in cost avoidance annually. Members are finding real value in obtaining a line at Alloya, and in turn, are relying on the cooperative, and not their competitors.
Regardless of the funding need, credit unions need to ensure that they have access to reliable liquidity. Alloya’s Lending Department offers competitive terms and sound guidance for all lending products and special loans. Learn more about other liquidity options.