Financing Your Co-op
FINANCING AND CAPITALIZATION
There are five ways to finance (capitalize) your co-op:
- selling shares
- accepting loans from members
- collecting fees from members
- loans/grants/equity from other sources (Venture Capital, financial institutions, co-op funders, credit unions, friends, family)
- government and non-government social programs
You will likely use a number of ways to finance your venture, depending on the nature of the service and whether you are a
non-profit or for-profit co-op enterprise. For example, to be eligible for some government programs you must meet certain criteria, such as being a non-profit co-op.
GETTING THE MONEY YOU NEED TO START UP AND RUN YOUR CO-OP
Do you have the short-term and medium-term funding of your
co-operative arranged? On Co-op has links to co-operative developers and organizations which provide funding for
co-operatives. Check out the FastLinks on the right.
Consider:
- How much money will you need to start up?
- How much money do you need to run your business?
- Where will you find the financing?
- How will you pay your loans?
