Project with Cooperativa Producción y Servicio Cuero-Calzado (COOPROCAL R.L.)
Raw materials (leather, glue, soles, sponges, clasps) to produce shoewear. | |
With this line of credit, the cooperative can buy raw material for its store where the coop members buy their raw materials. The first purchase will include approx. 1,200 feet of leather, 360 pairs of soles, 15 gallons of glue, a bag of clasps, and 6 sponges. Because they will be buying in bulk, they will be able to get better prices. The cooperative will sell the raw material to its members at a price with a margin in order to cover the cost of transport, the | interest, and in order to create a working capital fund.
As we learned with the last loan, this amount of raw material will be sold in about 3 months. But because it's a line of credit, they can buy more, provided that they maintain a level of raw material and cash which would be the same as amount of the line of credit (c$80,000). After 3 months if all goes well, we can repeat the process and lend the money immediately so that they can continue working. |
| Name | Cooperativa Producción y Servicio Cuero-Calzado (COOPROCAL R.L.) |
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