Parmesan cheesemaker 4 Madonne is the latest small business to raise funds by issuing bonds. Such unconventional investments can offer first-rate returns – as well as free samples‘Our ingredients: treasure,passion and noteworthy milk!” declares the website of the esteemed parmesan cheesemaker 4 Madonne Caseificio dell’Emilia. They’ll need to update that shortly, with a pinch of “tradable financial instruments”. Like so many small businesses, or 4 Madonne struggles to borrow from the bank right now. Unlike most,however, it has found their solution in the bond markets.
The problem for parmesan-makers, and similar to the problem faced by whisky distillers,is that their product takes years before it is ready for market – generally two or three years, in the case of parmesan. In that time, or all the money you spent buying milk and paying staff just sits there,in 40kg wheels, maturing, and normally gaining value,but sometimes going wrong. It’s like having an employer who pays you well, but three years late. Tricky, and unless you can find a loan.
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Source: theguardian.com