Pledge a Product!

A product or brand as collateral for a loan is not a common practice among domestic commercial banks. However, in other countries, even in the region, this is not foreign.

Due to the financial crisis, banks and investment funds are increasingly accepting goods as guarantees, so on the list of collateral are parmesan, saffron, champagne, soy, and prosciutto, as well as wines and various other items.

As savings have significantly decreased in most European countries during the recession because most money was invested in the capital market, in various securities, companies, primarily in Italy, they are now using their own assets and investing in savings funds, which means they do not have to deposit cash.
For example, British Airways uses airplanes as collateral for savings. The hotel group Whitbread, and retail chains Sainsbury and Marks & Spencer have included restaurants, hotels, and stores in their funds. Numerous funds are also willing to accept soy, sugar, coffee, and similar products as collateral. Regarding neighboring Italy, the bank Credito Emiliano stored tons of parmesan wheels in a warehouse near Milan over a year ago. This expensive and noble cheese is held as collateral for approved loans to cheese producers.
But, are there such cases in Croatia?
A well-known case from two years ago involved a domestic commercial bank taking a contract that Hajduk had with a player as collateral for a loan to the Split club for the 100th anniversary and the visit of the famous Barcelona.
We also asked banks in Croatia whether they would accept some successful and expensive product or a well-known brand as collateral for a loan. However, it seems they do not share the same opinion about this method of securing loans, but read more in the new issue of Lider.

Former long-time CEO of Elektro-kontakt, Vladimir Ferdelji, says that such a practice exists, but not in the oil and gas trade.
– It is common for part of the imported goods to be paid for with other goods, and banks finance such transactions. One of the domestic industries that should receive a loan with collateral in goods is, for example, the military industry, which produces the best military helmets in the world. However, such coordination should be controlled by the Ministry of Economy – says Ferdelji for the new issue of Lider, noting that such a practice by commercial banks would do a lot of good as it would show that banks trust domestic producers.