Professional Documents
Culture Documents
Sources of Fund of Cooperatives
Sources of Fund of Cooperatives
FUND OF
COOPERATIVES
I. Internal Sources
Debt Capital
Short term
Long term
2. Revolving capital.
Another way of generating capital
is o defer payment of interest on share
capital and patronage fund.The Board
shall issue revoving capital certificate
with serial number,name,amount and
rate to be paid at time of retirement.
3.Capital reserve.
At least ten percentum (10%) of the annual net
surplus shall be set aside for reserve fund for
the stability of the cooperative.
4.Deposits of members or loans
from members.
The cooperative may receive
two kinds of deposits.
a. Savings deposits; and
b. Time deposit
5. It may also borrow from
members at terms
comparable or less
onerous than loans from
outside sources.
6.Cooperative guarantee fund.
8.Subsidies,grants and
donations. The cooperative may
also accept from members
subsidies grants and donations.
II. EXTERNAL SOURCES
1.Loans.
The cooperative may borrow from
external sources to supplement the
members share capital contribution but
it must not compromise the
cooperatives autonomy and
independence. It must be at best terms
and conditions available.
2.Subsidies,grants and donations.
Example:
Advances from customers
Fund-raising activities