Warehouse Receipt Financing
Warehouse receipt financing is a type of financing that financing institutions can utilise to extend post-harvest financing to farmers; buyers and other warehouse receipt holders. The warehouse receipt is processed and issued by registered warehouse operators through ZMX’s centralised system and acts as a certificate of title that is then used as collateral by credit providers. management system.
Warehouse Receipt Financing helps banks access quality se-cured lending business at relatively lower administrative costs. It is also beneficial to farmers as it helps them access much needed post-harvest financing. It creates good business for warehouse operators as well as agricultural contractors.
Key Features of the Warehouse Receipt
- Negotiable instrument
- Tradable on ZMX
- Acceptable as collateral
- Recognised as security in terms of the Securities Act
- Anchored on the Warehouse Receipt Act and Warehouse
- Receipt Regulations
Who Can Participate
- Financiers (such as Banks; Microfinance Institutions; Input Suppliers; Corporates; Individuals)
- Warehouse Operators