Warehouse Financing What Does Warehouse Financing Mean?

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. 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. Carrying Cost Of Inventory What Does Carrying Cost Of Inventory Mean? This is the cost a business incurs over a certain period of time, to hold and store its inventory. Businesses use this figure to help them determine how much profit can be made on current inventory. It also helps them find out if there is a need to produce more or less,

in order to keep up with expenses or maintain the same income stream. Also referred to as carry cost of inventory.

Investopedia explains Carrying Cost Of Inventory Carrying cost of inventory is often described as a percentage of the inventory value. This percentage could include taxes, employee costs, depreciation, insurance, cost to keep items in storage, opportunity cost, cost of insuring and replacing items, and cost of capital that help produce income for a business. HDFC : Realize better prices for your agricultural produce and avoid distress sale by availing HDFC Bank Warehouse Receipt Loans. The procedure is simple, documentation is minimal and disbursement is quick. Features & Benefits Loans from Rs. 1 Lacs onwards depending on your needs. Avail Loan against wide range of commodities Funding extended against commodities stocked in a range of different WH/Godowns Attractive interest rates. Quick loan approval process Avail loan against Demat commodities Customer privileges - Existing asset relationship customers can

avail a special Top-Up loan facility. Stock insurance cover - We also offer you stock insurance facility for commodity stocked. HSBC : Warehouse Financing

Warehouse Financing Warehouse Financing (WF) is a structured method of financing, wherein funds are extended to manufacturers and processors based primarily on the underlying asset - commodities as identified by a warehouse receipt issued by an independent collateral manager appointed by the Bank. At present, HSBC is offering short term financing against warehouse receipt for Cotton Bales, Castor Seed, Cashew nuts, Pulses, Paddy / Rice, Maize, Mustard Seed, Soyabean Seed and Wheat. The objective of WF is to partially transfer the credit risk from the borrower to the underlying commodity and adding risk mitigants in order to deliver the following benefits to the borrower:

Leverage the strength of its raw material (commodity) by using it as the primary collateral Get a structured pricing which is more attractive than adhoc working capital or ad hoc short-term loans Get financing in tranches aligned with the stock build-up schedule

Repayment schedule aligned to actual usage of raw material. No additional collateral required for availing this facility.

The borrower is required to deposit and pledge the commodities in favour of the bank, in a warehouse identified by the borrower and approved by the Bank. The Bank appoints a collateral manager, who issues a warehouse receipt in favour of the borrower, certifying the quality & quantity of the commodities stored. The Bank on the basis of the warehouse receipt disburses the corresponding loan amount to the borrower. Taking into account the seasonal nature of selected, HSBC has setup processes to enable faster turnaround for processing and approving loan application as well as faster turnaround time for actual disbursement of the loan. ICICI Loans Other Loans Retail Warehouse Receipt Based Finance Whether you are a farmer or the owner of an agri enterprise, ICICI Banks Retail Warehouse Receipt Based Finance helps you get the most out of your produce. Avail loan against your produce and facilitate cash flow in your business. With ICICI Banks Retail Warehouse Receipt Based Finance you can realise better prices for your produce and avoid distress sales. Contact our experienced Warehouse Marketing Agents (WMAs) in your area for quick and convenient finance. The ICICI Bank Edge

Financing around 72 different type of commodities

Financing being done across 200 districts in the country Funding extended against commodity stocked in Private /Government warehouses /Cold storages Fast processing of loan pan India basis Loan is also available for Demat stocks

Eligibility Borrower Eligibility

Farmers Agri-enterprises/Processors Traders Eligibility criteria for (WMA)

Commodity intermediary/Warehouse owner/ End user of the commodity Minimum 2 years nativity and business continuity Good market reputation Good network with traders and farmers

Loans Other Loans Documentation Documentation for Borrower

Preliminary credit application form Standard terms and conditions Final credit application form Constitution Documents of the firm/company Documentation for WMA

Application for appointment WMA agreement

Guarantee PDC declaration Security documents Constitution Documents/company FAQs

How can I apply for the loan? What is the maximum amount of loan I can avail of? How long will it take for my loan to be approved? By when do I have to repay the loan? What is the rate of interest on the loan? From where can I avail the loan? How can I apply for the loan? The easiest way to apply for a commodity loan is to visit your nearest ICICI Bank branch and contact the RMAG officials. They will be able to help you with the best finance options to suit your requirements. Our large network of sales and verification personnel ensure that your loan is approved in the fastest time possible. What is the maximum amount of loan I can avail of? Farmers can avail of loans up to Rs.1 million. For traders, agri enterprises and for processors, the maximum loan amount is Rs. 50 million. How long will it take for my loan to be approved? Our large network of sales and verification personnel ensure that your loan is approved in the fastest time possible. By when do I have to repay the loan? Repayment must be done within 6 months from the date of disbursement

What is the rate of interest on the loan? We provide competitive rate of interest that can vary depending on prime lending rate, loan amount and underlying collateral. From where can I avail the loan? Retail Warehouse Receipt Based Finance is available either directly from ICICI Bank or through Warehouse Marketing Agent (WMAs), who are locally present and have prior experience in handling commoditie