Risk Analysis and Measurement in Warehouse Financing

The current financial tsunami makes it difficult for enterprises, especially small and medium enterprises (SME) to ask for loans from banks to finance their future manufacturing activities and business development. Recent years, warehouse financing emerges as an effective and popular means for SMEs to get financing and investment from major banks and large corporations. In addition, it incorporates 3rd party logistics (3PL) who provides professional warehouse and supply chain service. This article identifies and analyzes the risks throughout the warehouse financing process, and gives several evaluating measures of those risks.