Saturday, January 08, 2005

Micro-loans & scrip

There are two kinds of loan programs we need to use to grow the tango center. One helps us with capital expense and the other with inventory.

When you run a store with predictable sales, and you need more inventory, it's quite safe to borrow in order to get more inventory. But when you need capital for infrastructure, loans can come in the form of "scrip", useable for future use of the facility.

Again, the reason for soliciting loans is to allow more participation by the community in the growth of a center, without personal loss. Projects can also solicit donor pledges, and it's a useful experiment to see which is most effective.

We have a simple first test of the loan program: the Tango Store. CD's, books, and other items, cost money to buy. We can sell tangoscrip, and take loans, for inventory. We can keep track of inventory & loan repayments. This is the first online tool we need. Once we have it, it can apply to any sub-project of the Tango Center, or any other community center.


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