Earlier quoted context omitted.
I love the fact about them being coops and having the ability to borrow with their cheese as collateral. It is so old world and so wholesome. I'd like to borrow against my cheese one day.
You can borrow against most assets you own. Margin in your stock account, a mortgage or HELOC, etc. Credit cards are essentially based on your ability to repay much like borrowing against your future cheese revenue.
Most of the stuff in my living room, for example, would not be able to secure a loan, except maybe a pawn loan on undesirable terms.
And it’s really weird to look at credit cards as an example of the same thing. “Your ability to earn and repay” is not generally classified as an “asset” except maybe metaphorically — not a financial/accounting sense.