field warehousing

An inventory-financing method by which a merchant pledges its inventory, which is in the possession of a third person (a warehouser).

• This is a method of financing an inventory that cannot economically be delivered to the creditor or third party. The borrower segregates part of the inventory and places it under the nominal control of a lender or third party, so that the lender has a possessory interest. Cf. floor-plan financing under FINANCING; PLEDGE.


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