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Crometal is a cooperative that makes industrial shelving and scaffolding. Workers recovered the bankrupted company in 2002 after a lengthy legal battle. They began with 18 working associates, but there are now 35 workers in total, more than half of them added in the last couple of years. La Base began to work with them at La Base's inception. They have made timely repayment of 26 loans and there has been significant social impact, that encouraged La Base to loan to them again each time that the cooperative has requested it.
They have a repeat clientèle for their | durable goods, but as the goods are durable, the demand for them is irregular. Particularly the last few months of 2009 demand dropped so badly that they are in need for financial support in order to be able to invest the current demand raise. The other problem is that checks they are being paid with are postdated, meaning they may need a month or even more to be able to cash them, something that deepens the need of financial assistance. Therefore this loan, in which we change them checks from recent payments for cash, should allow to catch up with demand faster. |
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