Warehouse Receipt Financing
Increasing bankability as the supply of goods becomes eligible security
Increasing the turnover of supply of goods and profitability
Outsourcing control over the management of the onsite supply
Increase in working capital for business expansion and business development, despite limited fixed asset condition.
Warehouse Receipt Financing is financing of commercial transactions of commodities/products that are widely traded with the main collateral in the form of commodities/products that are financed and stored in warehouses or independently-controlled places.
Flexible for customers’ business scheme (tailor made), in the form of:
- Profit Sharing Financing (Murabahah)
- Mark Up or Cost Plus Financing (Mudharabah)
- Partnership (Musharakah)
Characteristics of Warehouse Receipt Financing:
- Financing for commercial transactions (working capital)
- Financing for commodities/products that are widely traded (tradeable), and those commodities become the main collateral
- Financing to fill the finance gap of customers who transact, with disbursement of funds, tenor, and installments/payments, adjusted to the purchase-production/storage-sale cycle (cash-to-cash cycle)
- Financing with the presence of the Collateral Manager who is independent and credible.