Finance

Adequate financial resources are fundamental to start, operate, and grow any business. There are also finance issues that are unique to cooperatives, since cooperatives are structured to provide benefits to patron members, rather than capital investors. Members, as owners, provide equity capital in proportion to their use of the cooperative. It is part of members’ obligation as owners to share in business risk as well as business profitability.

Please see our  Basics of Cooperative Finance page for an overview of how cooperatives use debt and equity to meet their capital needs, distribute profit, and manage tax requirements.