Balance Sheet Management
Loan Participations

Today’s credit union loan-participation marketplace is teeming with buyers and sellers. Some invest in loan participations to develop a new source of interest income. Others sell pools of loans to raise liquidity. The uses and benefits of loan participations are numerous.

Alloya’s Loan Participation Program simplifies a burdensome process, drastically reducing time and effort for credit unions. Unlike non-credit union brokers, Alloya provides full financial transparency – to both buyers and sellers – throughout the loan participation process. Commerce is preserved within the credit union industry.

Financial officers use loan participations as a strategic balance sheet management tool to:

  • Manage liquidity
  • Increase income
  • Address interest-rate risk
  • Fine-tune asset-liability ratios

 

Buyers
To diversify assets, generate interest income (at rates that are competitive with investments), and reduce excess liquidity, credit unions buy a percentage of a pool of loans offered by peers.

 

Sellers

To increase liquidity and reduce the ratio of long-term loans in their portfolio, credit unions sell pools of loans to other credit unions.

Put Alloya to Work
When you are ready to incorporate loan participations into your balance sheet strategy, Alloya is here to help. Explore the resources at the right for details. Contact us to get started.

Resource Center

Checklists

Sample Documents

Sample Agreements