warehouse financing


warehouse financing
A form of inventory financing in which goods are held in trust as collateral for the loan. Warehouse financing may involve the use of public warehouses in which the goods are held in locations owned by third parties. Alternatively, warehouse financing may involve the use of field warehouses in which the goods are located on the borrower's premises but are controlled by an independent third party. American Banker Glossary

Financial and business terms. 2012.