What is a Credit Union Service Organization (CUSO)?

  • February 3, 2021

The financing of a major commercial real estate project is no small feat. Thus, investors must carefully assess the financing options made available to them. Most expensive commercial endeavors can safely be financed with a credit union service organization (CUSO), which provides helpful financial services to clients looking to break into new markets.

Investors should consider embracing the help provided by a CUSO if they’re searching for a safe and timely way of financing a commercial real estate project in the near future. CUSOs are strictly monitored to ensure their legitimacy and provide unparalleled financial services to those looking to expand quickly.

Keep reading to learn the answer to “What is a CUSO?” the benefits of partnering with a CUSO and more.

What to Know About Credit Union Service Organizations

What is a CUSO?

A credit union service organization is best defined as a corporate entity owned by either a federally chartered or state-chartered credit union. They help cut back on the costs of providing financial services to a wide array of clients and provide revenue to credit unions by backing successful projects in need of financial assistance.

To fully understand what a CUSO is, consider the vast array of services they provide to clients; check cashing, coin and currency services, accounting services, and business loan origination are but some of the services offered by CUSOs. CUSOs can also manage delicate tasks such as financial counseling services and the management of electronic transactions.

For member business-lending CUSOs, they often manage the servicing of a business loan from the start of a project until its end. For a full list of services and activities that CUSOs manage on behalf of their clients, consult the Legal Information Institute’s helpful page on this subject, including all activities that a credit union service organization can legally partake in.

Benefits of a Partnering With a CUSO

The benefits of relying on a credit union service organization speak for themselves. Both investors and borrowers gain access to a well-regulated industry that ensures the speedy and legitimate management of critically important financial services. CUSOs ensure that loans are quickly provisioned and provide vastly more secure services than legacy financial systems, which struggle to compete in the hectic digital age. They also provide enhanced document management to ensure necessary financial paperwork related to an upcoming real estate investment doesn’t get lost or stolen.

All data sent by CUSOs to the NCUA is handled securely and sensitively, with no public access granted to confidential commercial or financial information. This ensures that credit union service organizations are ideal sources of financing for cautious real estate gurus who don’t want their competition to get word of what they’re planning. Interested parties looking for a specific CUSO can search a secure government database for registered credit union service organizations.

CUSOs allow borrowers to invest with flexibility as they put money back into their communities. They make refinancing existing loans easier to manage and ensure ideal outcomes for those real estate investors who demand nothing but excellence from their financial partners.

Find a Fitting Financial Solution

Ready to obtain financial peace of mind? You can find a fitting financial solution to your investment hurdles by contacting Extensia Financial, which has an established history of helping borrowers achieve their commercial goals on-time and under-budget. Investors can rest assured that Extensia has extensive financial backing and years of expertise it can leverage to ensure the success of a project; AVANA is a majority stakeholder of Extensia, whose state-of-the-art website is ready to help borrowers and lenders alike.