I am from the customer’s house agent and logistics business community. And I have noticed how for a very long time the entire business community has been running on unofficial credit. This is impacting the entire trade as banks are very reluctant to bank intangible sales.
These are all cheque- based businesses, however tracking credit given to other companies is becoming extremely difficult.
As this credit is given from one business to another rather than business to another business through a bank or credit union.
Is there a CO OP bank who can provide ” credit union” like credit facilitation for all our trading partners so that the entire trade platform can benefit ?
Or
Is there a way a way I can form a credit union based service for the entire logistics and customs house agent business community? Where should I go to gain more knowledge about this?
I C Naik
If there exists a large number of such individuals as yourself why not talk to them and plan incorporating a Credit Cooperative of such traders exclusively. After some initial fund contrbution you should be able to get good amount of loan from UCBs and lend it to the members. Larger the Fund Based larger will be the borrowing.
For example minimum borrowing as er mitted under Rule 35 of MCSR 1961 is as under:
- Conditions for borrowing by societies with limited liability: – (1) No society other than those referred in Rules 36 and 37 with limited liability shall, without the previous sanction of the Registrar, incur liability exceeding in total “fifteen times the total amount of its paid up share capital, accumulated reserve fund and building fund minus accumulated losses :
Provided that central banks, urban banks and producers’ societies shall not except with the previous sanction of the Registrar, incur liabilities exceeding twenty times the total of their paid up share capital, accumulated reserve fund and building fund minus accumulated losses.