Financing receipts

GGC warehouse receipt system allows grain Depositor/ producer to use the goods as loan collateral,  which may be used to access funds before they sell their goods. Warehouse receipts are often administered in the process.

The Warehouse Receipt is a document issued by a licensed warehouse operator certifying the quality and quantity of specified commodities placed by a named depositor into the warehouse. The document guarantees the existence and availability of the quality and quantity of the commodity.


The Warehouse Receipts Financing Process

The Warehouse Receipts Financing Process

The warehouse Receipt specifies the following:

  • Name and location of the Warehouse
  • Commodity
  • Date deposited
  • Name of Depositor
  • Quantity of commodity (Number of bags)
  • Net weight
  • Quality / Grade of commodity
  • Storage charges
  • Date up to which storage charges have been paid


A Warehouse Receipt can be negotiable or non-negotiable – a negotiable warehouse receipt can be bought or sold with legal protection and a non-negotiable warehouse receipt cannot be bought or sold.

A copy of the warehouse receipt advice is given to the depositor/owner of the grain, and a copy retained in the warehouse’s files.

The warehouse receipt system apart from solving difficulty of obtaining credit, it is an arrangement that also solves the lack of storage facilities. The success of the system relies on a series of linkages that are being addressed by GGC. They involve access to storage facilities, credit, markets and market information.

The Warehouse Receipt System ensures trade security for all stakeholders in the agricultural industry. It reduces post-harvest losses by providing for the safe storage of excess grains at harvest time. This extends the sale season and thus has the advantage of reducing seasonal price swings.


Financial Institutions (FIs):
The GGC is engaging both banking and non-banking financial institutions within the locality of the smallholder grain producers, grain traders and community warehouse operators to seek their buy-in into the use of the warehouse receipts as a tradable instrument as well as a collateral for agri-financing.


Comments are closed.