What are Capital Credits?

For a telephone cooperative, Capital Credits are the amount of money left over at the end of a business year once all the operating expenses have been paid (generally referred to as profits in a private company). This remaining money is allocated separately to each member of the cooperative in proportion to the total amount of goods and services purchased by the member for that year. In other words, members get a percentage of the profits credited to them and the more services and goods that they have purchased means a greater share of the capital credits. Members begin accumulating capital credits with their first purchase of services and goods from NCTC.

Capital Credits are just one of the many benefits of your NCTC membership because private telephone and internet companies do not make capital credit payments to their customers.