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Warehouse Receipt Financing
NMB has introduced warehouse receipt financing at selected branches.
Through the system of warehouse receipts, farmers or their associations can have immediate access to cash when they deliver their goods to certain warehouse. The goods are released by the bank once the buyer has paid for them.
The bank will calculate a percentage of the goods' world market price and will increase the customer's overdraft facility with this amount. After the goods have been sold and the payment has been deposited into the customer's business account, the overdraft amount will be reduced again. Simple but effective.
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