Investments
Your co-operative needs capital in order to acquire fixed assets and working capital to provide regular services to members and customers. Financing is obtained from three sources:
- Annual profits and depreciation allowances
- Creditors who provide money as lenders
- Members and other individuals who help to finance the business as investors. There are several different investment opportunities as described below.
Demand loan accounts
Money that is invested in these accounts is treated as a loan that is repayable on demand. Interest rates are usually fairly attractive for short-term investments. Funds can be put into these accounts at any time and withdrawn at any time and the maximum amount per individual is $150,000. Interest is calculated monthly, taking into account daily all new loans and repayments that take place during the month. Interest is credited to the balance of the demand member loan account each month and a monthly statement is mailed out showing all the transactions that have taken place.
Unsecured debentures
These are long-term investments that are issued for three or five-year terms. Interest is paid annually. Upon the initial investment, a confirmation statement is mailed out, and then after that, there is a statement of investments sent out annually.
Periodically your co-operative offers a secured debenture series and whenever these are available, details will be posted on this website. At that time information will also be mailed out to current investors and members.
For more information contact your local branch or call Paul Emerick at (519) 380-2373.