Northwest Federal Credit Union Reviews

9

Overall

8.9/10

Funding Speed

8.6/10

Cost

9.3/10

Experience/Reputation

9.2/10

Service and Support

8.9/10

Pros

  • Provides various business financing options, including lines of credit.
  • SBA preferred lenders.
  • Veterans in commercial business and real estate lending.
  • Extensive property and casualty insurance products.
  • 123+ years in business.

Cons

  • Limited ABL options.
  • Regionally-focused.
  • Invoice factoring not offered.

Northwest Federal Credit Union Reviews

See the above info for Northwest Federal Credit Union Reviews. If you’re a current or prior Northwest customer, we’d like to get some feedback from you. What was your experience like?

Northwest Federal Credit Union Spotlight

·       Headquarters: Herndon, Virginia

·       In Business Since: 1896

·       Best for: Government Contractors

·       Primary Financing Methods: Term Loans, Lines of Credit, SBA Loans

Northwest Federal credit union serves both individual and business customers primarily in the northern Virginia, Maryland and North Carolina areas. They offer many services including online banking (consumer business checking accounts, savings accounts), mobile deposits, business loans and lines of credit, consumer mortgages, merchant services and insurance and tax advisory. SMEs also enjoy access to a dedicated small business representative.

The credit union is not affiliated with Northwest Savings Bank of Pennsylvania, despite the name. Contrary to banks, credit unions are insured by the NCUA (National Credit Union Association), not the FDIC.

While some view credit unions as “private”, becoming a member isn’t too difficult. Businesses across the country take advantage of NWFCU benefits. It is best to be an employee (or household member) of one of the following companies (the full list can be viewed on the nwfcu.org website):

·       Applied Information Sciences

·       BAE Systems

·       Computer Sciences Corp.

·       Comscore Networks

·       General Dynamics

·       Honeywell

·       InfoVista

·       Navstar Inc.

·       Raytheon

·       Satyam Computer Services

·       Verisign

·       Vulcan Construction Materials

 You can also obtain membership if you belong to the following organizations (more listed on their website):

·       American Society of Civil Engineers (ASCE)

·       Association of Former Intelligence Officers (AFIO)

·       National Association of Realtors

·       National Institute of Governmental Purchasing

·       National Investor Relations Institute (NIRI)

·       National Wildlife Federation

·       Office of the Director of National Intelligence (ODNI)

·       Special Olympics Virginia

·       The Humane Society of the United States

·       UNICOM

·       Women Veterans Interactive

Northwest Federal Credit Union provides a variety of financial services to business capital to entrepreneurs, small businesses and medium-sized companies. These customers are often shunned by the big banks and even regional lenders. But Northwest is different-their small business funding options including term loans with seasonal repayment structures and construction loans (fixed or variable rate).

Given the proximity to the nation’s capital, it’s no surprise that Northwest Federal credit union offers working capital solutions for government contractors. Many are small businesses that must wait 30, 60, or 90 days to get paid, depending on the agency or municipality being serviced. Small businesses understand that government contracts can be very lucrative so they offer very flexible credit terms to land the account.

What Type of Alternative Funding does Northwest Federal Credit Union Provide?

Northwest Federal Credit Union Business Lending Options Include:

·       Working Capital Business Loans

·       Term Loans ($50,000 minimums)

·       SBA loans (7(a) and 504)

·       Real Estate loans

·       Lines of Credit

·       Small business credit cards

·       Business Auto Loans

·       Equipment Financing

Federal Credit Union offers small business credit cards. The credit limits on these charge cards are pretty limiting, up to just $30,000. But they do offer rewards such as travel benefits which can be very useful if you have extensive business travel. Additionally, the cards come with no annual fees and no cash advance fees. The initial APR (annual percentage rate) charged on the cards will run between 9.49% and 18% based on the borrower’s credit profile (from nwfcu.org on June 4, 2019). Then, the rate will vary monthly based on the prime rate quoted in the Wall Street Journal on the last day of the month.1

The Northwest Federal Credit Union business line of credit was created to help businesses meet seasonal demands and quickly increase inventory to meet demands. Northwest advertises fast turnaround times for their lines of credit. They structure these working capital business loans as either secured or unsecured. The higher quality the collateral backing the borrower, the lower the interest rate they’ll be charged.

The minimum loan amounts are reportedly $50,000 with both closed-end and revolving credit facility options available. This minimum may be more than very small businesses need to meet their needs. A better option for them might be an online or asset based lending outfit such as Loan Me, Rapid Advance, Fundbox, or Kabbage loans.

Northwest Savings Bank Pros and Cons

In addition to the Northwest Bank reviews above, we reiterate these key pros and cons:

Main Pros:

·       Provides various business financing options, including lines of credit.

·       SBA preferred lenders.

·       Veterans in commercial business and real estate lending.

·       Extensive property and casualty insurance products.

·       123+ years in business.

 

Main Cons

·       Limited ABL options.

·       Regionally-focused.

·       Invoice factoring not offered.

 

Similar Lenders to Northwest Federal:

·       Tab Bank

·       Security Service Federal Credit Union

·       Mascoma Savings Bank

·       National Bank of Arizona

·       Riviera Finance

·       Independent Bank

·       Middlesex Savings Bank

·       Webbank

·       Union Savings Bank

 

1https://www.wsj.com/market-data/bonds/moneyrates