Free Financial Advice - Approved: How To Start Credit Unions ...

When starting credit unions Alexandria, there is the need to have members who are willing and able to form the union. They are supposed to poses a common goal and interest prior to formation. These members should then follow a procedure laid out to establish them.

The interested parties first seek a common ground upon which they want to start a union. This may be because they share a profession or because they have the same amount of salaries. This helps them to know why they are coming together.

Those interested are then called for a meeting. A survey is then carried out which is later used to choose those who are genuinely interested. The members to support the union should exceed three thousand for it to be considered economically viable.

For a union to operate it requires a charter that licenses the operations of the union. The representatives visit the national credit union administration offices. Here they are required to present their detailed business plan, a list of the foreseen costs and duly completed forms. There are guidelines given on how to fill the forms.

A committee is formed by some of the members. They have to meet certain requirements such as possessing good credit ratings. If one was declared bankrupt just before the formation started, they cannot be eligible committee members. A financial expert can also be included in this team to give out ideas on anything financial that may arise.

Almost every organization formed should have a board of directors. There is no exception when it comes to a union. A board of directors must therefore be formed to oversee the general operations. These directors should be well versed to all the aspects that the union operates under.

The subscription fees are then paid by each one of the members to the clerk of the union. This money is used to pay registration fees to the relevant authority and also to cater for any other expenses that may have been incurred.

In a union there are shares subscribed to by the members. These shares have a certain value attached to them hence the members should pay a certain amount for them to own a proportion of the whole amount raised. These funds raised can be termed as capital which can be used to issue loans when the operations begin.

The union also needs workers just like another organization. Independent people from the members are therefore recruited for the posts of management teams and other staff. They help in the running the union and they perform the duties held by each one of them.

There are challenges to be faced during formation since the members are new to them. They therefore have to visit a credit unions specialist who knows how to operate the unions. They can be hired to help in the formation or they can give corrections on anything that was done wrong previously

With the goals and objectives of the credit unions alexandria well set, then they can start their operations. These operations should be aimed at attaining these goals and objectives. The members of the union are still the shareholders owning it as a whole.

Source: http://101freefinancialadvice.blogspot.com/2012/08/how-to-start-credit-unions-alexandria.html

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