SLCM has tie-ups with multiple banks as their ‘Collateral Manager’ for Warehouse Receipt Financing. The company provides best-in-class audit and security services as part of collateral management services to the banks and other financial institutions.

Considering extensive network of warehouses and warehousing service, banks approach SLCM to be the custodian of given commodity in a particular warehouse. Agriculture commodities are stored in SLCM warehouse which act as the security of the loan for respective bank. These commodities pertaining to identified client by bank in the form of collateral securities. Collateral Financing allows lenders (banks) to immediately sell off a liquid asset i.e. agriculture commodity, in case a farmer defaults on the loan. The underlying collateral is usually a soft commodity like guar, chana, mentha, mustard, etc. The company manages the quantity and quality of the collateral to mitigate the risk for the bank/financial institution. The commodities are stored in licensed and non-licensed warehouses that issues a receipt evidencing that the commodities are physically present at the warehouse.

The rate matrix is mutually agreed upon by both parties including other terms & conditions as per the agreement.