Increasingly, companies are forced to mortgage their brand to get funding. Facing the lack of liquidity and lack of physical assets to offer to endorse the request for a loan, the intangible value of the brand is becoming a resource to offer to the bank.
The fact of mortgaging a brand is not necessarily a bad thing, in fact the Civil Code provides that you can both sell a brand or a name and also offer it as a loan guarantee. The problem starts when you do not fulfill the contracted obligations, then the bank can sell the assetto a third part to recover its investment. The risk begins then, when the company still operates trying to get out of a situation of imbalance with the risk of losing their own identity and the subsequent inability to maintain its activity if it loses its differentiator assets from competitors.
Brands such as Victorio and Lucchino, Trappe, Dhul, Marsans, Magefesa or Moss, among others, have been at some point in its history as the slab weighed about their names yet.
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