Flawless credit and a great balance sheet aren’t always enough to secure working capital from a bank, much to the dismay of many commercial customers. Increasingly, they are turning to Achieva Credit Union to get what they need to succeed.
“When people think of a credit union, they still think of a place to open a savings account or maybe get a car loan,” says Achieva’s Vice President, Business and SBA Lending Manager Ron Mirenda. “But we’re a full-service financial institution. It’s not just credit cards and car loans. We can manage your investments, finance your business and also take care of your savings account – and a whole lot more.”
Although it is relatively new to Southwest Florida, Achieva Credit Union has been in business for 75 years and is well known in other Florida markets. With $1.4 billion in assets, it serves close to 140,000 members from 24 locations statewide. In 2013, Achieva opened its first Southwest Florida branch in Cape Coral and now boasts seven locations in Lee and Charlotte counties, from Port Charlotte to Estero.
“Most people are surprised at the scope of services that we offer,” says Mirenda. For instance, in addition to consumer products and services, Achieva offers a full suite of business services designed to help commercial owners manage their cash flow, merchant services and other critical business functions. It is also eager to finance businesses that want to grow.
Besides commercial loans for real estate and investment properties, Achieva also offers commercial lines of credit. “We do and we do it (commercial lending) very well for a wide variety of borrowing needs, just like the banks,” says Mirenda. “Our goal is to help our members succeed.”
Providing a Hand Up
Dixie Brown, DVM, knows what it takes to be successful. But she knew little about Achieva or credit unions when she sought funds to buy a bigger, better building for her Cape Coral veterinary practice, East West Veterinary Care Clinic.
At the time she acquired the practice, Brown had a lease-purchase agreement with the owner of her clinic’s 1,200sf building. “I had great credit and a good income,” she says.
But when the real estate market crashed and business slowed, the building’s owner wouldn’t budge on the original terms. Unable to afford the rent or finance the building’s inflated purchase price, Brown says she felt stuck.
“I absolutely love what I do, but I had to find a way to get a new building or I was literally going to have to close my doors and shut down the practice,” she says. “I’d had my eye on (another) location for more than a year, but nobody was lending at the time. ‘No’ was all I heard.” Brown contacted Achieva at the suggestion of a banker who had turned her down for a loan.
“Achieva was different. They treated me like a human being, not just a number,” says Brown. “They looked at my books and saw that I had been doing well,” and approved her loan. Within six months, Brown completely transformed her new, 5,000sf location from a real estate office into a modern veterinary clinic with exam and treatment rooms, staff offices, a reception area and therapy pool, as well as a waterfront dock for clients who prefer to arrive by boat.
Brown says that Achieva not only saved her business, it allowed it to prosper beyond her loftiest expectations. “Within eight months, the new space was too small for us!” she says, laughing. Soon, she hopes to break ground on a 2,500sf expansion to accommodate a growing staff of five veterinarians and approximately 24 support personnel.
Brown now has personal checking and savings accounts with Achieva, as well as an auto loan. “I do all my banking with Achieva now,” she adds. “They’re friendly, caring people.”
Credit Unions vs. Banks
Mirenda says that Achieva emphasizes personal customer service because it wants people like Brown to succeed. “With us, you’re part of a family,” he says. “No one has perfect credit, but we’re willing to at least listen to their story and do whatever we can to help them achieve their goals.”
This approach has garnered Achieva a significant share of new business from dissatisfied customers of large, national banks. “That community banking feel is getting harder to come by and that’s what we really strive for at Achieva,” says Mirenda.
One aspect of Achieva’s top customer service is to educate prospective members about credit unions, how they work, the products and services they provide and the advantages they offer. It also means dispelling any misconception that credit unions are somehow inferior to large banks and traditional lenders. That’s not the case.
The two entities are actually more alike than not. The National Credit Union Administration insures credit unions at the same levels and limits as the Federal Deposit Insurance Corporation provides banks. Further, Achieva has the capacity to make the same size and types of loans as most commercial banks. Recently, it approved a loan for $6.5 million.
“The sweet spot for us is probably loans up to $1.5 million,” says Miranda. “But we’re almost a $1.5 billion financial institution, so we can be flexible.” Also, because Achieva’s commercial and SBA loans are kept in its portfolio, its rates and terms tend to be more attractive than the banks that sell their loans to the secondary market.
However, there are some key differences.
- Membership. Unlike banks, credit unions are composed of members who pay a negligible fee to join. Achieva membership costs $1 and is open to anyone who lives or works in the counties where there’s a branch location. It is not limited to specific professions or trades. Those who live outside the service area can still join by donating $1 to the Achieva Foundation, which supports selected community programs in markets served by Achieva.
- Internal structure. Most banks have a well-compensated board of directors whose goal is to maximize the return on investment to stockholders. As a not-for-profit organization, Achieva’s board is composed of unpaid volunteers who want to do what’s best for the surrounding community. Credit union members elect the directors; profits are distributed through dividends.
- Local Decisions. Achieva’s decisions, underwriting and servicing are all handled locally, rather than by an out-ofstate corporate office. Keeping things close to home allows Achieva to respond to loan requests and other needs more quickly than most major banks.
Promoting Prosperity
Achieva’s loan volume has increased significantly in the wake of the recession, rising 56% between 2015 and 2016. “Many of the small businesses are growing. Those that may have had to lease space during the downturn are now looking to buy their buildings,” he said.
However, not all owners and investors seeking financing are interested in getting a loan. Some, like Steve Leckie, prefer a commercial line of credit, which enables borrowers to access the amount they need when they need it. Leckie owns Southwest Cycle in Cape Coral, where he has worked selling low-mileage used motorcycles, parts and service for the last 18 years.
In 2015, as the local economy was rebounding, Leckie applied for a line of credit so that he could expand his inventory. “I’ve been doing this quite awhile,” he said. “And (as a business owner) I know that the more money you have and the more money you invest, the more money you can make.”
His long-time bank concurred and, based on the strength of his successful business record and excellent credit, agreed to give him a loan that he didn’t want, not the line of credit. In fact, none of the seven lenders he contacted would give him a line of credit.
“Any bank would have given me a loan — it wasn’t a whole lot of money,” said Leckie. “But I don’t want to pay interest on funds that I’m not using. It doesn’t make sense. The banks weren’t looking at what I was trying to do with the business as a whole; they were just looking at specific things. It was a bizarre situation.”
The tide turned when he contacted Achieva, which sent a lending representative to talk to Leckie, tour the business and discuss his plans. “I showed him the whole layout and what I was planning to do with the money, how I would secure it and how, if something went wrong, I would pay it back,” said Leckie. “He wasn’t just checking off boxes to see if I would qualify (for a credit line). He told me he thought he could get it done,” and he did.
That was 18 months ago. Since then, Leckie’s line of credit has enabled him to expand the business from 4,000sf to 6,000sf in an adjoining building, which he rents and uses for storage. Leckie has also opened additional personal and business accounts with Achieva and frequently works with its lending officers to finance purchases for customers.
Leckie also has inadvertently become one of Achieva’s most ardent recruiters and a rich source of referrals. “I’m not trying to be a spokesperson for the place, but I don’t know why everyone doesn’t bank with Achieva,” he adds. “Do you want to feel like a real person? Bank there!”
Gulf Coast Growth
As word-of-mouth referrals and a burgeoning population enhance demand for the Achieva brand, its presence in Southwest Florida and along the Gulf Coast is sure to expand. From its inception, Achieva has focused on long-term growth and positioned itself near the more economically diverse population centers. Accordingly, it usually opens branches in retail strip centers and builds up its membership before relocating to a larger, freestanding building.
However, the credit union made an exception in late 2015 when it acquired Calusa Bank’s four locations: one in North Port and three in Charlotte County, considered one of the top growth markets on Florida’s west coast. Besides acquiring the bank’s almost $200 million in assets and filling the gap in Achieva’s footprint between Venice and Cape Coral, the purchase has exposed Calusa’s customers to new products and services. “At the same time, we’re trying to implement products and programs that Calusa offered so that customers have the best of both worlds,” says Bill Werdell, Achieva’s senior commercial relationship manager.
Werdell, who came to Achieva from Calusa, says that most of the bank’s customers have responded positively to the conversion. “Achieva was much larger than Calusa, so it had more to offer in the way of credit cards, lines of credit and other products,” he says. “However, we’re in the process of implementing a business services department to offer programs and products that Calusa established prior to the conversion, such as Treasury management, sweep accounts and ACH transactional abilities,” among others.
Otherwise, Werdell says the two entities “really mirror each other quite well. Even though Calusa was a commercial bank and Achieva is a credit union, the way we treat our customers and give back to the communities where we have our branches is very similar.”
Expect to see more Achieva branches in the near future. Plans call for additional Southwest Florida locations this year as more people embrace the benefits of credit union membership.
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