Why Credit Unions Love Gun Shop Business

Finding a reliable banking partner can be complex for any business owner, especially if you are operating in a highly regulated industry such as the firearms industry. Traditionally, banks shy away from the firearms industry due to possible backlash from customers, stakeholders, and employees who have differing opinions on gun ownership. However, credit unions have started to step up to the plate and offer a variety of banking solutions for gun dealers and firearms businesses.

Let’s explore why credit unions are starting to step up to the plate for gun shop owners, how these businesses differ from traditional banks, and why they are a critical partner for gun dealers who are operating across state lines. With a financial partner such as BKW Servicing, you can operate with multi-state FFL banking and set your business up for long-term scalability.

Credit Unions Vs. Traditional Banks

Let’s take a look at the differences between credit unions and banks, to help understand why credit unions are more likely to be excited to work with gun shops.

Credit unions are non-profits owned by members, they have a primary goal of serving their member’s financial needs. Banks on the other hand are for-profit institutions that aim to maximize shareholder value. This difference often makes credit unions more community-focused and willing to work with small and medium-sized businesses.

Their decision-making processes often differ as well. Credit unions tend to make lending and account decisions at a small level, taking into account the needs of their customers. Banks exclude industries deemed high-risk, which include the firearms industry, and rely on more centralized decision-making.

Why Credit Unions Love Gun Shop Businesses

Credit unions are unique in the fact they serve firearms dealers with enthusiasm, despite the challenges of working with these businesses. They have embraced this industry for reasons such as:

1. Community: Credit unions are tied to local communities and often advocate for small businesses in the area, including gunships. Credit unions see firearms businesses as an essential part of upholding the Second Amendment.
2. Risk: Traditional banks have policies that usually work against firearms businesses, while credit unions are able to work on a case-by-case basis and form an opinion of whether or not to partner with each individual organized.
3. Lower Fees: Gun shop owners are focused on reducing operational costs so that they can improve their bottom line. As a result, being frugal when it comes to fees is critical. Credit unions know this and often provide lower fees and interest rates which can benefit businesses who are looking to increase their bottom line.
4. Willingness to Innovate: When operating a firearms business, you will be navigating complex regulations and strict local and federal laws. Credit unions are more willing to work closely with gun dealers to help offer solutions that align with FFL requirements while encouraging them to scale across multiple states.

Multi-State FFL Banking

Financial challenges can become complicated when gun dealers begin operating across state lines. This type of operation requires banking solutions that are able to handle regulatory requirements and manage transitions in different jurisdictions. Credit unions are very well suited to meet these needs as they have a focus on personalized service.

Here are some key factors you should consider when working with FFL banking as a gun shop that is looking to scale across multiple states:

1. Unified Banking: Credit unions are able to consolidate financial tools to simplify banking for businesses across multiple states and locations.
2. Compliance: Credit unions also have experience working with highly regulated inquiries, making them a create partner for businesses who follow FFL laws.
3. Scalability: As your business grows, your banking system will need to keep up! Credit unions are able to adapt their services to meet your evolving needs as you expand your client base and increase sales.

Limitations of Credit Unions

You might be wondering, credit unions sound so great…what is the catch? The truth is, they are! However, they do come with a few limitations. Membership requirements are one to consider, as most credit unions have specific membership criteria based on location and industry. Smaller credit unions may also not be able to offer the full range of services needed for more complex transactions. You will also want to make sure your credit union is not heavily localized, as these typically do not have the capacity to support multi-state businesses.

BKW Servicing

At BKW Servicing, we know that credit unions provide a great alternative for gun shop owners, but they still come with their flaws. That is why we specialize in financial services that are designed for the firearms industry and all of the compliance features that go along with it.

If you are interested in multi-state FFL banking, this is our expertise! We ensure your business has access to the tools and support needed to thrive. BKW stands out from the rest due to:

1. Financial Solutions: No matter if you are interested in payment processing services or multi0dtate account management, we are a full-service provider who helps your gun shop operate smoothly.
2. Industry Expertise & Compliance Support: FFL regulations can certainly be daunting. Our team helps you minimize risk by staying compliant and understanding the pressures that gun dealers face. Not only that, but our transparent pricing ensures there are no hidden fees, and that you get the most bang for your buck!
3. Personalized Service: At BKW servicing, you can rest assured that when you partner with us, we treat you as a client and a person. Our customized services are committed to your success so that you receive tailored support just for your specific needs.

Ready to take the leap and begin your partnership? Contact us today!