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Crowdfunding Loans through Coop Exchange

Diverse Financing for Cooperative Ventures

Coop Exchange is building a platform that will introduce a versatile and accessible approach to debt financing for cooperatives and cooperative-like businesses through crowdfunding loans. This method will be adaptable to a variety of scenarios, including existing cooperatives, private businesses transitioning to cooperatives, spin-outs from cooperatives or mutuals, and startups.

Crowdfunding Loans: an overview

  • Community-Based Funding: Unlike traditional loans, crowdfunding loans involve raising small amounts of money from a large number of people, typically via an online platform.
  • Flexibility and Accessibility: This approach offers flexibility in terms of loan amounts, repayment terms, and can often be more accessible than traditional bank loans.

Likely to be suited for

  1. Existing Cooperatives: Enhance your cooperative’s projects or operational capacity without diluting ownership.
  2. Converting to Cooperatives: Facilitate the transition of private businesses into cooperatives by raising funds to restructure and democratise the business.
  3. Cooperative Spin-Outs: Spin-outs can use crowdfunding loans as start-up capital or for specific project funding.
  4. Startup Cooperatives: An alternative to issuing investor shares, startups can utilise crowdfunding loans to kickstart their operations with the support of a community of backers.

Potential Advantages of Crowdfunding Loans

  • Community Engagement: Strengthen the bond with your community and customers who can directly contribute to your success.
  • Avoid Equity Dilution: Raise necessary funds while retaining full control and ownership of your cooperative.
  • Broader Investor Appeal: Access a wider pool of potential supporters compared to traditional financing options.

How we can help in the future

We’re building a solution that will provide:

  • Platform and Support: Coop Exchange will provide the platform and support necessary to launch and manage a successful crowdfunding loan campaign.
  • Visibility and Outreach: We will help maximise the visibility of your campaign, reaching a broad audience of potential contributors.
  • Guidance and Compliance: We will ensure your campaign complies with relevant financial regulations and guidelines.

Stay in touch

To learn more about how Coop Exchange plans to build financial solutions tailored to coops, please contact us at debtfunding@coop.exchange.

Please note that the content of this page is for general information and educational purposes only. In so far as it relates to Coop Exchange’s potential services these relate to a future state once the Coop Exchange platform is launched and appropriately regulated. The information is not provided, and should not be construed as the provision of financial advice, the promotion of an investment product. or dealings or arrangements in investments. Investments bring risk and so anyone wishing to invest (whether in coops equities, debt or other securities) should first obtain appropriate advice from an authorised person before doing so, please see also our Regulatory Notice.