DEBT FINANCING


Co-ops can also take on debt financing from financial institutions like credit unions or banks in order to finance their projects and operations.This can include obtaining a mortgage or loan to purchase property or equipment, opening a line of credit for the co-op to use, or other types of shorter term loans. The ability to obtain financing of this type will depend on several factors, including:

  • The available equity or collateral that the co-op can bring to the table
  • The perceived risk of the investment or the business of the co-op on the part of the financial institution

  • The amount of money required

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