List and Describe the Three Basic Types of Secured Inventory

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The Answer is The three types are blanket lien,trust receipts and field warehouse financing. The blanket lien is certainly the easiest for the firm since the lender just takes a lien against all of the firm's inventory and the borrower typically does not have to give the lender precise lists of what constitutes inventory on a regular basis. Trust receipt financing requires the borrower and lender to specify the exact inventory that backs up each advance. This can be a time-consuming and cumbersome type of financing for the firm. Field warehouse financing requires an independent company supervise the collateral for the lender. This,too,can be a cumbersome type of financing.

List and Describe the Three Basic Types of Secured Inventory

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