L&T Finance in pact to offer receipt financing

L&T Finance today tied up with National Collateral Management Services (NCMSL) to provide receipt financing, which involves collateral management and warehousing services, to farmers and small businesses.

The objective is to assist industries, traders and farmers in financing their working capital requirements at all stages of the supply chain, right from pre-harvest to marketing and export, the company said in a statement here.
"This tie-up with NCMSL will provide a great fillip to warehouse receipt financing and help farmers avoid selling their produce at give-away prices by enabling them to hold on and wait for better prices," L&T Finance Chief Executive Dinanath Dubhashi said.
L&T has already started the warehouse receipt finance in certain areas and will be expanding soon, he said, adding the partnership with NCMSL will help mitigate credit risks for its commodity finance product offerings.
"NCMSL plans to build its own warehouses at 40 locations across 12 states, and this partnership will facilitate secured post-harvest lending on large scale to farmers, processors and other agri-business clients," NCMSL Managing Director and Chief Executive Sanjay Kaul said.