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This cooperative is a bakery recovered after the bankruptcy and held by its former workers. Two years ago they had a sudden increase in demand due to a contract with a city government to provide meat to municipal schools. This meant moving to another lever in terms of number of partners, production capacity, management and financing etc. and the creation of more than 15 new jobs.
Due to the 45-60 day delay in payment from the city government, the cooperative had to self-finance the purchases of inputs in the first two months before starting to charge. | That is why they had liquidity problems. They need this loan to buy supplies for a week until the payments from the city government start coming in.
In addition, they started a process of change in internal operations
The advantage of the loan is that the cooperative has a steady costumer in the city government. The main risk is that the difficulty of managing funds in this high daily production may lead to liquidity problems and prioritize other costs such as supplies or cooperative salaries ("retiros") instead of loan repayment.
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Snapshot
