The Use of Inventory as Collateral
The three key types of inventory loans are:
- Floating Interest Lien which is a claim on inventory in general
- Trust Receipt Inventory Loan which is used to finance relatively expensive inventory items that remain in pessesion of the borrower
- Warehouse Receipt Loans which is an agreement whereby the lender receives control of pledged collateral which is stored or warehoused, by an agent designated by the lender
- 1994, HarperCollins Publishers