AUSTIN, Texas (12/5/13)--Large companies tend to look toward large financial institutions to handle their lending needs. But U-Haul, under its parent company AMERCO, recently turned to credit unions and other community financial institutions for a $100 million loan.
Of those 23 financial institutions, four credit unions were part of the corporate financing that was guided by BancAssets LLC, which works to bring large and middle-market corporate lending to community financial institutions.
U-Haul embraced the idea of using the communities they serve to finance their business instead of going to big institutions, said David Hill, CEO of the Austin, Texas-based BancAssets.
Hill told News Now
that it is important to provide funding avenues for Fortune 1000 companies. "By going back to the communities they serve, they experience more economic empowerment and involvement," he said.
Of the 23 community financial institutions involved in the corporate financing, the following four credit unions were included:
Atlantic Regional FCU, Brunswick, Maine, $266 million assets
Leaders CU, Jackson, Tenn., $208 million assets
Money One FCU, Largo, Md., $105 million assets
Sacramento (Calif.) CU, $367 million assets
The package put together by BancAssets gave U-Haul the opportunity to work with new lenders that they may not have known about, said U-Haul Treasurer Gary Horton in a press release.