This Italian Bank Accepts Cheese as Collateral for Loans
win-win situation: a situation or outcome where everyone benefits
Can you imagine a bank accepting cheese as collateral for a loan? Credito Emiliano, a regional bank in Italy, has been doing this since 1953. They accept Parmigiano-Reggiano cheese as collateral for small-business loans. The aging time can be up to 36 months for this type of cheese, which can be a problem for dairy farmers. This long aging process means their money is tied up in their inventory. Having access to loans solves a major problem. The farmers also save on operating costs as the bank stores and ages the cheese in climate-controlled vaults until the loan is repaid. The bank’s cheese warehouse holds 160 million euros worth of cheese. For the banks, it’s a risk-free loan because the collateral is so valuable. This unique banking model proves that with a little creativity and a focus on community needs, it’s possible to create a win-win situation for everyone.
1. When both parties in a negotiation are satisfied with the outcome, it is a win-win situation.
2. The shop offered a discount to customers who brought their own bags, reducing plastic waste and saving money for the customers, creating a win-win situation.
3. Carpooling is a win-win situation as it saves fuel, reduces traffic, and is also good for the environment.