Warehouse Receipt is a document issued by a warehouse operator confirming deposit of goods. It serves as evidence of ownership and describes the quantity, quality, and condition of stored goods. Warehouse receipts can function as collateral for financing and may be transferable, allowing ownership changes without physically moving the goods.
Types of Warehouse Receipts:
- Negotiable warehouse receipts can be transferred or sold to another party, and used as collateral for loans in trade finance.
- Non-Negotiable warehouse receipts state that only the named person can claim the goods, and they cannot be transferred or used for financing.
Warehouse receipts enhance trade financing by securing loans against stored goods, help to safely store and track inventory, and enable easy transfer of goods ownership without physical movement.