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The loan is aimed to purchase raw material for the manufacture of security shoes. With this stock, they will be able to respond faster to new orders and clients. This will allow them to grow gradually until they obtain the stability that will eventually allow them to increase their salaries.
The loan will also cover bsic machinery for production,this will provide them with the opportunity to increase their productivity, and this would be the most valuable impact of the loan.
With this loan they will be able to avoid the bottle neck that often results from insufficient operating | capital. In this way, with increased working materials in their control, they can avoid the problems of rising costs and/or decreasing working capital. Meanwhile, they will be able to better focus their human resources and materials on production and also on sales, this will permit them to more easily maintain and improve their income and the capitalizacion of the cooperative.
While this is occuring at the cooperative, a resulting difficulty will be incorporating new employees within a short timeline, making supervision of the employees and production the highest priority. |
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