Mutual Guarantee Societies
= pool finance risk among co-ops and small businesses and enable lower cost capital to be secured from Co-op banks and social investors [1]
Description
Pat Conaty et al.:
"Mutual Guarantee Societies are co-operative societies of small businesses who come together to guarantee each other’s loans using their other cash assets as collateral. They will normally form a partnership with a local bank or other form of mutual credit organisation to take the members’ deposits and provide loans. This process enables those with little security to obtain credit secured by the collective strength of the members combined cash deposits. They operate principally in Europe, where they are represented by the European Association of Guarantee Institutions (AECM) which is based in Brussels." (http://www.greatdigitalcompany.co.uk/sep/SEP2.xml#Example93)
Directory
- European Association of Guarantee Institutions (AECM) : Europe
- National Association of Mutual Guarantee Societies (NAMGS) : United Kingdom