Cooperative Financing—External Sources of Capital

  • Glynn McBride


We have now explored sources of equity capital needed in our cooperative. It was suggested that about half of these funds—those needed for fixed capital uses such as land, buildings, and equipment, and those needed for operating the cooperative for at least the first year in paying such items as salaries, taxes, office and other supplies—should come from the members. This means that about half of the needed funds will have to come from outside or external sources. Let’s now examine those sources of borrowed funds or debt capital. Although net worth generally provides the major part of their capital, cooperatives would not be able to develop their services to the fullest extent without the use of borrowed funds.


Interest Rate Unique Credit Money Market Credit System Loan Fund 
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  1. Bank for Cooperatives 1979. Banks for Cooperatives, How They Operate. Circular 40.Google Scholar
  2. Commodity News Service, Inc. 1985. 2100 W. 89th Street, Box 6053, Leawood, Kansas 66206.Google Scholar
  3. Congressional Record. Proceedings and Debates of the 99th Congress, 1st session. Washington, DC.Google Scholar
  4. Valko, L. 1981. Cooperative Laws in the U.S.A. Bulletin 0902. Washington State University, Pullman.Google Scholar

Copyright information

© The AVI Publishing Company, Inc. 1986

Authors and Affiliations

  • Glynn McBride
    • 1
  1. 1.Department of Agricultural EconomicsMichigan State UniversityEast LansingUSA

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