Field warehousing

Definition of Field warehousing

Arrangement whereby wholesaler, manufacturer, or merchant finances his business through pledge of goods remaining on his premises and it is limited type of warehousing as distinguished from public warehouse. Lawrence Warehouse Co. v. McKee, C.A.Fla., 301 F.2d 4, 6. An arrangement whereby a pledgor may have necessary access to the pledged goods, while the goods are actually in the custody and control of a third person, acting as a warehouseman on the pledgor’s premises. Field warehousing is often employed as a security device in inventory financing where the financer or secured party desires to maintain close control over the borrower’s inventory and have the advantages of being a pledgee of the property. The device is employed in financing manufacturers or wholesalers in seasonal industries and is also useful where the manufactured products must be aged or cured or where they are accumulated over a period of time and then disposed of all at once.

That's the definition of Field warehousing in Black's Law Dictionary 6th Edition. Courtesy of

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