Stock repurchase : a financing opportunity during crises

Stock repurchase : a financing opportunity during crises

Inventory financing has been evolving significantly for several years, but even more so since the Covid crisis. At that time, companies really became aware of the value of inventory financing. Last year Chetwode developed a specialised subsidiary for this purpose. In this article you will find the reasons for the growth of inventory financing and also the importance of the stock repurchase, an offer launched by the subsidiary Chetwode Inventory Services.

1. Why does inventory financing do well in times of crisis?

First of all, companies had to overstock during the Covid crisis. The latter did not allow for the withdrawal of stock. In addition, companies have built up additional preventive stocks to cope with the crisis if necessary.

And now the Ukraine crisis is making this even more acute. As the price of energy and raw materials rises, the working capital needs of companies are increasing.

2. What is the stock repurchase launched by Chetwode?

Last year, Chetwode launched its subsidiary Chetwode Inventory Services. The principle is the stock repurchase. Chetwode buys the customer’s stock and the management is controlled on the basis of a business plan. There is a great deal of work on price measurement, which is very specific and rigorous.

Chetwode recently set up a stock repurchase operation for a company in the retail sector worth 40 million euros. If the stock cannot be sold, third party investors will guarantee their residual values. These are non-French expert bodies that invest at a loss on some occasions. Some cases may not be eligible.

Finally, you can find more information on the AGEFI article and also on inventory financing on our website.

La revue de presse du financement industriel

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