Project with Cooperativa Producción y Servicio Cuero-Calzado (COOPROCAL R.L.)
Raw materials (leather, glue, soles, sponges) to produce shoes and other leather goods.
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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. 1,400 feet of leather, 260 pairs of soles, 10 gallons of glue, and other materials. 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 to buy the goods, the interest, and in order to create a working capital fund. |
As we learned with the past lines of credit that we've done with this cooperative, this amount of raw material will be sold in about 3.5 months. So the term of the loan will be 4 months. Because it's a line of credit, they can buy more throughout the term of the loan, 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 4 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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