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Banks dont want to lend money to them as often/much/favorably, coops usually don’t want investment.

To start a business you need capital, if you have enough on your own, you do not need a coop, much more difficult to convince a group of people to risk together unless they’ve all had previous experience with one another.



Why would Banks shy away if they are more productive and have better margins?


Banks calculate risk by looking at data, and there is far less of it for coops. And they are often irrational actors.




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