🧀 When Money Smells Like Parmesan

In 1953, in Italy, Credem realized a simple truth:
if a farmer owns Parmesan, he will never be short of money.

Parmigiano Reggiano is a reliable and highly liquid product. It doesn’t spoil for years and often increases in value over time. The problem is that reaching this value requires patience — the cheese must be aged for up to three years. Farmers, however, need cash here and now.

The solution was unconventional: loans secured by wheels of cheese.

The bank issued up to 80% of the cheese’s future value, while the Parmesan itself was stored in the bank’s own warehouses. There it could mature safely, maintain quality, and, most importantly, not “disappear.”

Over time, Credem became almost a cheese trader:
monitoring market prices, shipping Parmesan directly from storage, and managing price risks. If market prices declined, farmers were asked to provide additional collateral. Classic banking discipline — with a distinctly Italian flavor.

This model is still in use today.
According to 2018 data, Credem stored more than 430,000 wheels of Parmesan worth approximately €180 million.

The takeaway is simple:
when money is urgently needed, almost anything can serve as collateral — from cheese to future income.

Fortunately, today there is no need to age Parmesan for three years.
Loans and credit products can be compared and applied for online in just a few minutes.

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