Business
Why Americans Are Seeking Loans from Credit Unions in Record Numbers
During the Covid-19 pandemic and its aftermath, many Americans have relied on loans to keep their personal and business finances healthy. However, a recent trend has developed, indicating that how Americans are seeking loans may be unique compared to how they did so in the past. Specifically, rather than seeking loans from traditional commercial banks, many are instead choosing to apply for loans with credit unions.
A credit union is typically a local financial institution whose services and products overlap substantially with that of a bank. However, most commercial banks are profit-making institutions beholden to shareholders. Credit unions, on the other hand, exist to serve a community’s needs instead of earning a profit.
Each member of a credit union has equal voting rights. Instead of following rules and adhering to standards dictated by executives who aren’t members of the community, credit union boards consist of volunteers elected by all members who wish to cast a vote.
These differences influence the customer experience in ways that have recently made credit unions more appealing to loan-seekers than banks may be. Perhaps more importantly, research indicates that particularly in times of crisis, credit unions are more inclined to approve loan applications. One recent study indicates that, while banks often become hesitant to approve loans during crises, during the Great Recession and pandemic, many credit unions not only continued to loan money to members, but actually increased their lending.
This may be a reflection of the basic nature of credit unions. They’re established to provide a necessary service, much like a fire department or local hospital. According to Jordan van Rijn, senior economist for the Credit Union National Association, “During periods of risk and uncertainty, banks tend to pull back a lot more on lending and just get a lot more conservative. But credit unions as part of their mission is just to continue to serve the members.”
It’s also worth noting that loan interest rates at credit unions tend to be lower than they are at banks. This is another reason many Americans may have opted to seek loans from credit unions in recent months. They don’t want to exacerbate their financial woes by taking out loans with prohibitively high interest rates.
Additionally, many have already found that credit unions offer similar benefits even when national crises aren’t occuring. For example, some who’ve been turned down by numerous banks for home mortgages find that credit unions are more willing to work with them to offer alternatives to traditional mortgages.
Credit unions don’t provide loans and mortgages more willingly than banks because they engage in predatory lending. On the contrary, their low interest rates on loans highlight how they exist to support their members. Often, members have greater luck receiving loans from credit unions than from major banks because the local quality of the service, combined with the fact that credit unions don’t have a responsibility to earn a profit, allow credit union decision-makers to make these particular decisions based on a more personal understanding of a member’s situation. At a bank, decision-makers are required to follow the same procedures from one branch to another.
Many speculate that credit unions will also continue to grow in popularity after the pandemic. The way they served their members during a time of crisis has generated significant loyalty that may last well into the future.
Business
Why Multi-Province Payroll Compliance Is the Hidden Challenge Canadian SMBs Face and How Folks Solves It
Byline: Shem Albert
Running payroll in Canada can feel like crossing a country stitched from many different fabrics. Each province weaves its own pattern of tax rules, leave policies, and benefit requirements, creating a landscape where a single misstep can ripple through every paycheck. For small and mid-sized businesses, the challenge often remains hidden until growth pushes hiring beyond provincial borders or brings remote workers into the fold. What seems like a routine back-office task quickly becomes a test of accuracy, timing, and local knowledge. This is the gap that Folks set out to close, offering a way for employers to navigate Canada’s regulatory patchwork without slowing their momentum.
Provincial Rules Add Complexity
Canada’s payroll environment varies sharply by province. Federal rules set the foundation, but provincial tax rates, deductions, statutory leave entitlements, and benefit premiums add layers of complexity that employers must monitor carefully. Small and mid-sized businesses with staff across provinces or remote employees face different tax tables, reporting deadlines, and leave calculations that directly affect pay accuracy and remittance schedules.
Folks built its payroll module to address these differences. The platform calculates the correct provincial tax rates and deductions for each employee, applying updates automatically so employers avoid misapplied withholdings or late filings. Multi-location tax management allows a company with workers in Ontario, Quebec, or several other provinces to process payroll without creating separate accounts for each jurisdiction. Bilingual functionality in English and French and secure Canadian data hosting support compliance while keeping employee records accessible across language and regional boundaries.
Unified Records Improve Accuracy
Payroll errors often stem from mismatched employee data. Changes in pay rates, banking details, or benefits eligibility may not align between HR and finance systems, creating incorrect deductions or delayed payments. Smaller teams juggling separate platforms spend valuable hours reconciling information instead of focusing on strategic work.
Folks resolves these issues by combining HR and payroll in one platform. Updates to wages, hours, or tax information entered on the HR side flow directly into payroll without re-entry. This single, verified record strengthens the accuracy of every payroll run and ensures employees receive the correct pay and deductions. By removing the need for repetitive administrative work, HR staff can redirect their time to tasks that support growth and employee engagement.
Automation Keeps Provinces in Step
Each province sets its own requirements for holiday pay, pay frequency, and statutory benefits, making manual calculations both time-consuming and error-prone. Businesses that expand or hire remote employees must keep pace with shifting provincial regulations or risk penalties and audit issues.
Folks address these demands with automation designed for Canada’s regulatory landscape. Pay statements, deduction calculations, and custom pay schedules follow the applicable provincial rules without extra configuration. The system’s automated updates mean that a company hiring staff in British Columbia or Quebec can meet local payroll standards without adding new layers of setup or monitoring. Employers gain the ability to expand into new regions while maintaining accurate, on-time pay.
Reporting Strengthens Compliance
Changing tax rates and reporting requirements require ongoing attention from HR and finance teams. Companies that rely on disconnected systems risk missing a provincial update or submitting incorrect remittances, which can lead to fines and interest charges.
Folks provides detailed reporting tools that compile payroll, deductions, and benefits information across all locations. Employers can generate clear remittance and deduction summaries, simplifying the process of meeting provincial filing requirements. For organizations that want additional guidance, Folks also offers a payroll management service that brings in-house specialists to assist with configuration, compliance, and regular updates. These reporting features help companies stay audit-ready and avoid costly compliance gaps.
Scalable Payroll for Expanding Businesses
Many small businesses begin in a single province, where local tax and payroll demands can be learned over time. Growth into new provinces or the decision to hire remote staff adds a level of complexity that manual processes cannot handle efficiently. Errors multiply, compliance risks rise, and payroll teams spend more time correcting mistakes than supporting expansion plans.
Folks provides payroll that scales with company growth. Provincial tax logic, automated deductions, bilingual support, and secure Canadian data storage are built directly into the platform. By maintaining an accurate employee record and applying province-specific rules automatically, the system allows Canadian SMBs to expand with fewer administrative surprises and more predictable payroll operations. Companies gain the stability of compliant payroll across provinces while controlling the time and costs that typically accompany multi-jurisdiction growth.
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