The Finance Mechanism
The diagram illustrates the lending process:
- The order is placed by a buyer (e.g. a coffee importer) with the producer (e.g. a coffee farming co-operative)
- Shared Interest makes an advance payment on behalf of buyers to the producers
- The producer is able to borrow an additional amount against that order to cover their expenses
- The goods are delivered
- The final payment is made to the producer; the buyer re-pays the credit provided by Shared Interest
Read more about this topic: Shared Interest
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