Is there an easy-to-understand explanation for warehouse receipt pledge?

Loans are generally divided into credit loans and secured loans according to whether they are secured or not, among which secured loans are divided into secured loans, mortgage loans and pledged loans. Generally speaking, the collateral recognized by banks is mainly real estate, such as houses, factories, machinery and equipment. Pledges are mainly bank certificates of deposit, government bonds and other securities. Although the inventory of production enterprises or commercial enterprises also has certain value, it can be mortgaged in theory, but because it is difficult for banks to effectively supervise the inventory and lack of evaluation of the market value of the inventory, general banks are reluctant to accept the way of inventory mortgage loan. In this way, for those enterprises that lack suitable collateral, it is difficult to obtain loan support from banks despite their large inventory. Most small and medium-sized enterprises have this embarrassing situation. Warehouse receipt financing is essentially a financing method of inventory mortgage. Through the tripartite agreement between banks, warehousing companies and enterprises, specialized warehousing companies are introduced to play the role of supervising and keeping collateral, evaluating the value of collateral and guaranteeing, so as to realize the financing method with enterprise inventory warehouse receipts as collateral. Warehouse receipt financing is suitable for bulk goods with high liquidity, especially primary products with a certain international market scale, such as metals and raw materials, ferrous metals and raw materials, coal, coke, rubber, paper pulp and agricultural products such as soybeans and corn. Generally, it is difficult for any special goods, professional machinery and equipment, textiles and clothing, household appliances and other products to obtain the opportunity of bank warehouse receipt financing.