Aim: The purpose of this work is to investigate what differences there are between a credit union that is connected to Sweden’s Credit Association and an independent association, and how these differences have affected the union’s success.

Method: A qualitative study has been made by means of email and telephone interviews. Respondents were chosen from Sweden’s Credit Association, Credit Guarantee Association in Gävleborg and Övre Norrland Guarantee Association. The interviews were then analyzed in the light of our theoretical studies.

Result and conclusions: We have found that there are three major differences between the unions. One difference is the area they operate in, Övre Norrland credit union has an advantage in operating in a sparsely populated area where demand for these compounds is greater. The second difference is how unions are organized, we have concluded that there is not an advantage to belong to Sweden’s Credit Association. The third major difference we see is the risk awareness among unions, associations that are connected to Sweden Guarantee Association are experiencing a false sense of security and thereby take risks affecting the business.

Suggestions for future research: In this work the guarantee association in Gävleborg represents all affiliated unions to the Swedish association. A further study could include more of the compounds that are connected to Sweden's Credit Association, in order to get more width in the work. Another suggestion for further research in this area is to investigate members and banks views on credit unions, in order to see how knowledge and awareness of these associations differ between different regions.   

Contribution of the thesis: The essay has increased the understanding of the factors that may be crucial to the success of this type of organizations. We have found that the management of credit guarantee associations must be involved in managing the business and establish guidelines. They must also ensure that employees are risk aware and not take unnecessary risks.

Key words: Credit Guarantee, small businesses, creditors, assets, organizational structure.