Financial warehousing enterprises use the credit lines authorized by these financial institutions to flexibly pledge loans to small and medium-sized enterprises that need financing. Financial warehousing enterprises supervise the whole process of pledge pledged by financing enterprises to financial warehousing enterprises, and financial institutions do not participate in the specific operation process of pledge business. In this process, financial warehousing enterprises not only have the functions of financial warehousing enterprises, but also increase the functions of financial institutions, and accordingly bear certain risks for financial institutions. At the same time, it provides an unconventional financing method for some enterprises, especially some small and micro enterprises with little short-term capital demand, and of course it also increases profits for financial warehousing enterprises. Some people also call it chattel pledge loan. Financing enterprises pledge their movable property, warehousing enterprises supervise their pledged movable property, and financial institutions issue loans after confirming and signing agreements through warehousing enterprises. The pledge can be in the warehouse of the warehousing enterprise or in the warehouse of the financing enterprise itself. No matter in which warehouse, there is a common feature that the movable property pledged to the bank cannot be used in the warehouse, but it can be used according to the situation.
According to the total control, that is, on the basis of the minimum inventory required by financial institutions (in this case, the price has not changed or changed very little), the financing enterprise can apply to the supervisor, that is, the warehousing enterprise, for the minimum control part that exceeds the requirements of financial institutions.
The warehousing enterprise controls the delivery according to the minimum control notice, and when the total value is lower than the minimum control line, the warehousing enterprise stops the pledge from leaving the warehouse. When the price of the pledged goods changes drastically, especially when the price reduction is relatively large, and the pledged goods depreciate to or will soon fall below the minimum control line, the warehousing enterprise shall require the financing enterprise to replenish the goods according to the signed agreement to ensure the safety of the bank's funds.