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Definition of 'Warehouse Financing'
A form of inventory financing in which loans are made to manufacturers and processors on the basis of goods or commodities held in trust as collateral for the loans. The goods may be held in public warehouses approved by the lender, or may be held in field warehouses located in the borrower's facilities but controlled by an independent third party. A financial institution engaged in warehouse financing will usually designate a collateral manager who issues a warehouse receipt to the borrower that certifies the quantity and quality of the stored goods or commodities.
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Investopedia explains 'Warehouse Financing'
Warehouse financing offers a number of benefits to the borrower. It leverages the use of raw material as the primary collateral, while additional financing can be synchronized with the build-up of the stock. Warehouse financing also enables borrowers to obtain financing on more favorable terms than short-term working capital or loans, while the repayment schedule can be coordinated with the actual usage of raw material.
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Search results for 'Warehouse Financing'
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http://www.investopedia.com/university/fundamentalanalysis/fundanalysis7.asp
... measures how quickly the company is moving merchandise through the warehouse to
customers ... This is form of financing in which large capital expenditures are kept ...
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http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/common-characteristics-futures-forwards.asp
... 9.20 Types Of Off-Balance-Sheet Financing; 9.21 Effects Of Off-Balance Sheet Financing
Transactions On Financial Ratios; 9.22 Accounting For Leases. 10. ...
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