Asked by Tanisha Anderson on May 22, 2024

verifed

Verified

A type of inventory financing in which a third party to the lending arrangement typically acts as a control agent to supervise the inventory for the lender is called _______________________.

A) Blanket inventory lien financing.
B) Warehouse financing.
C) Trust receipt financing.
D) Secured lending.
E) Factoring.

Warehouse Financing

A form of inventory financing where loans are made to manufacturers and processors on goods stored in a warehouse as collateral.

Inventory Financing

A line of credit or loan dedicated to purchasing inventory, using the inventory itself as collateral.

Control Agent

An entity or individual assigned to oversee and manage specific aspects of a project, process, or operation to ensure it meets predetermined criteria or standards.

  • Learn about the range of short-term financing strategies open to enterprises and their respective traits.
verifed

Verified Answer

WO
William OsunaMay 23, 2024
Final Answer :
B
Explanation :
Warehouse financing involves a third party acting as a control agent to supervise the inventory for the lender, ensuring that the collateral (inventory) is adequately managed and protected.