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The pledge on stocks, a useful tool for SMEs and ETIs

2022-08-07T15:32:04.886Z


DECRYPTION - Companies place their stocks as collateral to obtain financing. Less widespread since the early 2000s, the practice of pledging stocks is making a comeback. Companies are faced with shortages of raw materials and delivery times that are now counted in months and no longer in weeks, production schedules become a real headache to manage. However, some were able to anticipate these issues, while others were able to seize supply opportunities. Because many compani


Less widespread since the early 2000s, the practice of pledging stocks is making a comeback.

Companies are faced with shortages of raw materials and delivery times that are now counted in months and no longer in weeks, production schedules become a real headache to manage.

However, some were able to anticipate these issues, while others were able to seize supply opportunities.

Because many companies have now built up very large precautionary stocks, in order to avoid finding themselves in under-activity.

However, this foresight generates enormous cash requirements.

This is why more and more companies are using the pledge on stocks, a device that allows them to place them as collateral to obtain financing from banks or debt funds.

“We are no longer in a society of abundance where companies bought just in time.

In fact, almost all of our customers...

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Source: lefigaro

All business articles on 2022-08-07

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