Case Study : Wanda 's Financial Advice

884 Words Sep 26th, 2016 4 Pages
Wanda’s Financial Advice
With Wanda financing her business out of her own pocket, she has no idea how to take out a loan to fund her expansion. With the right advice, Wanda’s business could really benefit from an expansion. The financial market is not easy to figure out, that is why Wanda should be educated on how some things work.
First, Wanda should know what type of financial institution she wants to borrow from. There are two types, depository and nondepository. Depository is just like the local credit union where she banks. These institution’s let you deposit money in your checking and savings accounts. These depository financial institutions also include commercial banks, credit unions, and savings banks. Commercial banks offer services to individuals, but they are primarily concerned with receiving deposits and lending to businesses. (“Commercial Bank” n.d.). Since Wanda has a small business with no other outside credit or loans, it is doubtful that a commercial bank would lend to her. A credit union is a non-profit financial institution that is owned and operated entirely by its members. Credit unions provide financial services for their members, including savings and lending. (“Credit Union” n.d.). If Wands wants to become part of a credit union to obtain a loan, she might be on the right track. The only downside is she has to be part of a specific organization or group. Like Navy Federal for example, to join, you have to be active duty military, retired, or related…
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