Receipt Finance
We offer warehouse receipt financing, a warehouse receipt financing system is a mechanism that allows the use of commodities as collateral to secure loans. These services are offered to clients including farmers, processors, exporters, as well as, traders.
These clients store commodities at a certified independent warehouse, the commodity will be graded and checked for quality and a receipt will be issued by the warehouse operator to them, specifying the quantity and quality of the commodity.
The client can use the receipt as collateral to access loans from us, a financial institution, while also enjoying the advantage of selling these commodities in the market when prices might be higher.
In the past; farmers, traders, processors, and exporters at the MSMEs level, seeking access to finance for working and, investment capital purposes are often unable to meet banks’ demands for collateral. And so unable to secure the loan, however, the warehouse receipt financing mechanism was introduced to eliminate this impediment.