Parkhead Credit Union
Personal Finance Company in Glasgow, Scotland
The members of a credit union pool their savings together. These savings then supply a pool of funds from which loans can be made. A credit union borrows money from its savers and may pay them a return on their money (dividend) The money borrowed from members is lent out to other members, who pay interest on the money loaned to them. The credit union must be successful in attracting a huge enough number of savers to supply a sufficient liquidity level to suit members' demands for loans, savings withdrawals and to pay operating expenses.