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Warehouse Receipt Financing

Warehouse Receipt System Council > Warehouse Receipt Financing

WAREHOUSE RECEIPT FINANCING PROCESS

Warehouse Receipt Financing is a form of credit where financial institutions provide loans using a warehouse receipt as collateral. A warehouse receipt is a document issued by a certified warehouse that proves ownership of stored goods. This system enables farmers, traders, and agribusinesses to access working capital while securely storing their produce for better market opportunities.
A farmer or trader deposits their agricultural produce, such as maize, coffee, or wheat, in a certified warehouse.

STEP 1: DEPOSIT OF COMMODITY

A farmer or trader deposits their agricultural produce, such as maize, coffee, or wheat, in a certified warehouse.
The warehouse issues a receipt detailing the type, quantity, and quality of the stored goods. This receipt acts as proof of ownership and can be used as a negotiable instrument.

STEP 2: ISSUANCE OR RECEIPT

The warehouse issues a receipt detailing the type, quantity, and quality of the stored goods. This receipt acts as proof of ownership and can be used as a negotiable instrument.
The owner of the warehouse receipt (collateral) presents it to a financial institution to secure a loan.

STEP 3:APPLICATION FOR FINANCING

The owner of the warehouse receipt (collateral) presents it to a financial institution to secure a loan.
The financial institution evaluates the receipt and disburses a loan based on the value of the stored goods, usually up to a certain percentage (e.g., 70-80%).

STEP 4:LOAN DISBURSEMENT

The financial institution evaluates the receipt and disburses a loan based on the value of the stored goods, usually up to a certain percentage (e.g., 70-80%).
The borrower repays the loan with interest. Upon repayment, they can reclaim their goods from the warehouse or continue to hold them until market conditions improve.

STEP 5:LOAN REPAYMENT

The borrower repays the loan with interest. Upon repayment, they can reclaim their goods from the warehouse or continue to hold them until market conditions improve.

PARTICIPATING FINANCIAL INSTITUTIONS

Rafiki-Microfinance-
UnaitasSacco
AFC
FamilyBank
EquityBank
KCB-Bank-Logo
NCBA-Bank
CreditBank
Consolidated-Bank
Coop bank logo
Eco Bank Logo
Absa Bank Logo
Access Bank Logo (1)
Sidian Bank Logo
Faulu Bank Logo
Loita Logo
Stanbic Bank Logo
National Bank Logo
INSTITUTION NAMETYPESTATUS
1Agricultural Finance CorporationBANK
2Kenya Commercial BankBANK
3Credit Bank PLcBANK
4Family BankBANK
5NCBA BankBANK
6Rafiki Microfinance Bank LtdMICROFINANCE BANK
7Consolidated BankBANK
8Unaitas Sacco Society LtdSACCO
9Equity BankBANK
10ABSABANK
11Access BankBANK
12Cooperative BankBANK
13Sidian BankBANK
14Eco BankBANK
15Loita Traders SaccoSACCO
16Faulu MicrofinanceSACCO
17Stanbic BankBank
18National BankBank