A warehouse receipt is a document or electronic record issued by a warehouse acknowledging custody of described goods. Depending on law and form, it may support transfer, pledge or release of the goods.
What information should it contain?
- Warehouse and depositor
- Receipt number and date
- Goods description, quantity and condition
- Location and storage terms
- Insurance or liens where relevant
- Release and endorsement conditions
Negotiable vs. non-negotiable receipt
A negotiable receipt may permit rights to goods to transfer through endorsement or delivery under applicable law. A non-negotiable receipt names the party entitled to delivery.
How is it used in finance?
A lender may rely on the receipt and control arrangements as evidence of collateral. Authenticity, warehouse independence and release controls are critical.
What should be verified?
Confirm the issuer, goods, quantity, ownership, liens, storage location and whether the receipt is original, active and unencumbered. Inspect or audit high-value goods.
Does the receipt prove quality?
Not necessarily. It records custody and described condition under its terms. Separate inspection, grading or testing may be required.
