|
Desde el Pie (From the Foot) is a worker-run cooperative dedicated to the production of various types of footwear. The purchase of this new truck is an old dream of theirs, as is the construction of a new office, which they are simultaneously undertaking. They are funding the construction of the office, but have made a proposal to La Base to help with the purchase of the truck. This period of reorganization will be very significant for the coop, and it is important to follow the project closely. The compañeros at Desde el Pie (and we here at La Base) hope these changes will help improve the long-term sustainability and profitability | of the cooperative.
Due to the nature of projects designed around purchases of long-term working capital, the quotas established for returning this loan are considerably longer than those established in previous loans.
The primary risk of the project is if the truck breaks down, with obvious subsequent costs in terms of repairs and work time lost. As the truck is insured, theft is not considered a risk, though it could delay the project. An accident would also cause problems. If the project does not function well for some reason, a large portion of the loan could be recovered through the sale of the vehicle. |
Snapshot
