COVID-19 has changed the way we live, work and conduct business. As credit unions have deposits on-hand that need to be at work, participation loans are a smart way to handle capital, allowing them to diversify.
Credit Union Loan Source (CULS), an Atlanta-based CUSO owned by the LSCU and three Georgia credit unions, already provides more than 50 credit unions in seven states with an alternative investment secured by assets they understand well – auto loans.
The CULS model asks credit unions to invest each month, providing a steady pipeline of loans that have been originated within the last 30 days. This model provides prime/super-prime loans with healthy returns, allowing credit unions to diversify risk by investing in a large number of loans.
“In these unprecedented times we look for great partnerships like LSCU and CULS to help us maximize our income opportunities while limiting our risks,” said John Wintermeier, Chief Business Officer at Achieva Credit Union
CULS program is beneficial for state-chartered credit unions of all sizes, accommodating monthly investment up to $20 million. CULS also recently announced an exciting expansion of the program – beginning in Q4 of 2020, the CULS program will be available at a minimum investment of as little as $100,000 per month.
Credit unions interested in CULS should contact their LEVERAGE Business Development Consultants or email firstname.lastname@example.org.