The financing system
Donations of the Circular Coffee Fund will be put into a rotating funds system within the selected farmer groups. With a combined experience of more than 20 years in these situations, the collaboration between Progreso and This Side Up makes the financing system of Circular Coffee Fund extremely solid. Let us explain in detail how it works.
a rotating fund
A loan that gets reinvested in a new project once it is paid back, is called a rotating fund. It is a reward for good project management: you're allowed to do more projects. In the Circular Coffee Fund, it is being steered by the collaborating farmer organization, like a cooperative or association, and provides loans for their farmer members. In the general assembly of such an organization, the rules are decided which allow it to be independently controlled. The Circular Coffee Fund gives assistance on how to steer and monitor such a fund in the best possible way and to sustain it for the longest possible period. Next to this, some of the paid back loans float back into the fund itself, allowing it to do more projects at different locations. In the end, it thus becomes a circular-circular fund, or a super-sustainable fund?
it is important
Our coffee farmers do not qualify for a loan at a commercial bank or finance institute, and when they manage to qualify, interest rates are too high as their loans are considered high risk. Investments are necessary to make coffee farming more sustainable and profitable, for current and future generations. The Circular Coffee Fund helps with this, in both short- and long-term investments. For our farmers it now becomes easier to buy sustainable fertilizers and better tools, but also to renovate their facilities, reforest the plantations and hire agronomists for expert teachings, without compromising on other expenses. Sustainable coffee farming now becomes a very interesting career option, and being prone to unfavourable financing conditions is thanks to the Circular Coffee Fund a fact from the past.
Your impact never ends
A rotating fund means that every 10 cents you invest per cup won’t help just a single project, but multiple projects for many years to come. It amplifies the aim of the Circular Coffee Fund and allows us to make coffee more sustainable for even more farmers. Every time you bring your own cup, you will contribute to a cleaner town, support sustainable projects for free and do this for many years to come. Imagine your impact if you keep on bringing your own cup.