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The cooperative is currently capable of processing around 20 tons of leather a week, an amount that once dried gives off 4 tons of leather ready for production. In reality, this is below the potential productive capacity of the cooperative, but due to a lack of capital and irregular provision of raw materials they have been unable to produce more. Furthermore, their principal supplier -- who is also their main client -- is demanding a larger percentage of their production, leaving them unable to satisfy demand from other clients.
The | idea of this loan is that the Working World provide Huesitos with the capital necessary to purchase 20 tons of leather for one week of production. After two weeks, the cooperative should be in conditions to repay the first half of the loan. The second half of the loan will be repaid in the measure in which new sales are made, in principal within two weeks of the first repayment. If this loan works as predicted, the idea would be to open a credit line permitting Huesitos a greater and more fluid productive continuity. |
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