What Is Warehouse Financing?

Warehouse Financing is also known as "warehouse receipt pledge financing", which means that the applicant deposits the goods with full ownership to the warehouse company designated by the commercial bank (hereinafter referred to as the warehouse party) and uses the warehouse issued by the warehouse party As a guarantee for financing, the bank provides the applicant with short-term financing business for special trade in goods similar to the warehouse receipt goods according to the pledged warehouse receipt.

Warehouse receipt financing

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Warehouse Financing is also known as "

What is warehouse receipt financing?

Is a self-paying loan

Warehouse receipt financing is linked to specific production and trade activities and is a self-paying

Warehouse receipt financing is an enterprise under the conditions of modern production economy

There are many methods of warehouse receipt financing in practice. In order to meet the needs of enterprises,

1. The supplier signs an order contract with a trading company.

2. As a borrower, the trading company paid a security deposit to the financing bank and requested the bank to issue a letter of credit.

3. The financing bank issues a letter of credit with the supplier as the beneficiary, and the bank where the supplier is located will notify the letter of credit.

4. The supplier will ship the product after verification.

5. The supplier submits a full set of L / C required documents including the bill of lading to the bank where the supplier is located.

6. The supplier's bank submits the bill to the issuing bank, that is, the financing bank.

7. The financing bank, as the issuing bank, pays after verifying the documents are correct.

8. The bank where the supplier is located allocates funds to the supplier.

9. The financing bank will hand over the bill of lading representing the ownership of the goods to the logistics company.

10. The logistics company picks up the goods, stores the warehouse, and issues the warehouse receipt to the financing bank.

11. During the warehouse receipt financing period, the trading company resells the goods to domestic importers;

12. Domestic importers pay the payment to the trading company.

13. The trading company used the payment to repay bank loans.

14. The financing bank issued an instruction to the logistics company, requesting delivery of goods to the trading company.

15. The trading company settles the related storage expenses.

16. Logistics companies deliver goods to trading companies.

17. Trading companies deliver goods to importers.

Under this warehouse receipt financing method, before financing starts, financing banks, trading companies and logistics companies sign a bonded warehouse collateral management agreement, and financing banks and trading companies sign warehouse receipt financing agreements.