Capital for Cooperatives Act supports Funding for Colorado Co-Ops. Unlike the traditional business model, co-ops often face challenges when it comes to finding access to funding for their operations. In a traditional business set up, a bank/financial institution would ask for a logbook, house as collateral which is impossible to provide for co-ops as they are owned by several members who may not be owning any property collectively (Everything.Coop – Home).
Co-ops financing can be split into three:
Directly from members
Member share capital.
Member service fees.
One time of annual membership fees.