Tea company turns to microfinancing for loans
New Mexico Tea Co., a bulk tea supplier, has turned to its customers to secure a loan through microfinancing. Its co-owner decided to appeal to their customers when his bank turned him down for a line of credit recently. He sent an email to the 3'800 people on his newsletter list with the aim to raise $5'000. To his surprise, he had raised $10'000 within the first 48 hours. The capital was made up of $4'500 in “microloans” and $5'500 in gift cards. The extra funds will allow the company to pay in advance for tea from vendors and to stock more tea, teapots, and other accessories.