Collateral Management & Agri-Financing Facilitation
Unlock the Financial Potential of Your Stored Commodities
For farmers and traders, harvested commodities represent significant locked-in capital. The pressure to sell immediately after harvest, often when prices are at their lowest, can severely impact profitability. Bhavya Agro’s Collateral Management services are designed to break this cycle. We provide a trusted bridge between your stored physical assets and the financial liquidity you need to grow your business, make investments, or await more favourable market conditions.
The Power of Negotiable Warehouse Receipts (NWRs)
Our services are built around the strength and legality of Negotiable Warehouse Receipts (NWRs), a powerful financial instrument introduced under the Warehousing (Development and Regulation) Act, 2007.
What is a Negotiable Warehouse Receipt (NWR)?
An NWR is a legal document issued by a WDRA-registered warehouseman. It serves as proof of ownership (title) for the specific quantity and quality of goods stored in the warehouse. Because it is “negotiable,” it can be transferred by endorsement and delivery, and more importantly, it can be used as primary collateral to secure loans from banks and other financial institutions.
How It Works: A Simple Path to Liquidity
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Step 1: Deposit & Inspection You deposit your agricultural commodities at one of our secure, WDRA-accredited warehouses. Our expert team conducts a thorough quality inspection and assaying process to certify the exact grade and quantity of the goods.
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Step 2: Issuance of NWR Upon successful inspection and storage, Bhavya Agro issues a legally valid Negotiable Warehouse Receipt in your name. This receipt contains all the critical details of your stored commodity, including its type, quantity, and certified quality grade.
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Step 3: Secure Financing You can present this NWR to our network of partner banks and financial institutions. The NWR acts as a secure and reliable form of collateral, as the bank is assured of the existence, quality, and quantity of the underlying asset.
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Step 4: Receive Funding Based on the value of the commodities represented by the NWR, the financial institution provides you with a loan or line of credit. This gives you immediate access to working capital, allowing you to avoid distress sales and manage your finances more effectively.
Our Role as Your Collateral Manager
By partnering with Bhavya Agro for collateral management, you transform your physical inventory into a dynamic financial asset, opening up new avenues for growth and stability.
We provide the secure, compliant infrastructure and quality certification needed to make your commodities bankable. We ensure your assets are protected and their value is accurately represented.
We act as the trusted custodian of the collateral. Our rigorous processes for quality assurance, security, and stock management mitigate the risks associated with commodity financing. We provide regular audit and inspection reports, ensuring the quantity and quality of the pledged stock are maintained throughout the loan period, thereby safeguarding the lender's interests.
As one of the premier collateral management companies, our role is to instill confidence in both the depositor (you) and the lender (the bank).