Efficient stock management and access to appropriate finance are the cornerstones of success for any business, whether in industry, commerce, agriculture or the craft sector. Often, significant financial resources are tied up in stored goods. Is there a way of storing these goods safely while using their value to obtain credit or facilitate transactions? The answer is yes, thanks to the combined system of general warehouses and warehouse receipts, a solution specifically governed by French law. In addition to this mechanism, French commercial law also provides a framework for other forms of grouping entities, such as the collective shop for independent retailersThis article provides a clear and accessible overview of this mechanism. This article gives you a clear and accessible overview of this mechanism: find out what a general shop is, how the warehouse receipt works, and what guarantees are offered to companies that use them.
The general shop: more than just a warehouse
Imagine a warehouse, but with official status and strict operating rules. In essence, it's a general shop. It is a private company whose main activity is to receive raw materials, goods or manufactured products belonging to professionals. Its fundamental characteristic is that it must obtain approval from the administrative authority (the prefect) in order to operate. To find out more about the regulatory framework, see our detailed article on the general shop.
This approval is more than just a formality. It implies that the operator meets criteria of reliability and financial soundness, and that it is subject to regular checks by the authorities. For you, the user, this represents a guarantee of reliability and security for the goods you entrust to us. The general shop therefore fulfils two essential functions: on the one hand, it offers a professional storage service, often with specialised facilities for optimum preservation; on the other hand, it is the essential link that enables warehouse receipts to be issued, opening the door to financial transactions on stocks.
The warehouse receipt: the key to your goods
When you drop off your goods at an approved general shop, you can ask for a special document to be issued: the receipt-warrant. This is not a simple receipt, but a powerful legal document. It is physically presented as a double document, made up of two detachable parts: the receipt and the warrant. For a more detailed exploration of its issue and uses, an article dedicated to the receipt-warrant is at your disposal.
The primary function of this document is to represent the goods deposited. The person who legally holds the receipt-warrant is considered to have disposal of the goods themselves, even if they are physically in the warehouse. It is this characteristic that makes transactions possible without physical movement.
The other fundamental aspect is its negotiability. The receipt-warrant is a so-called "promissory note", which means that it can be passed on to another person simply by endorsement, i.e. a signature affixed to the back of the document. This ease of transmission is the basis of its usefulness for selling goods or using them as collateral.
Use the warehouse receipt to sell or finance your stocks
The dual structure of the receipt-warrant allows several types of operation, meeting the different needs of your company:
- Selling goods in stock: If you wish to sell a consignment in its entirety, all you have to do is endorse (sign on the back in favour of the buyer) the two parts of the receipt-warrant. When the buyer receives the full title, he becomes the new owner and can collect the goods from the general shop.
- Obtaining stock financing: If you need cash but want to retain ownership of your goods, you can use the warrant as collateral. By detaching the warrant and endorsing it to your bank or another lender, you create a pledge over the goods. You retain ownership (you keep the receipt), but the goods serve as collateral for the loan. It's an effective way of obtaining credit based on the value of your stored assets.
- Selling goods that have already been pledged: Imagine that you have already pledged your goods via the warrant, but you find a buyer. You can sell these goods by endorsing only the receipt (the "property" part) to the buyer. The buyer becomes the owner, but acquires goods that are still subject to the pledge of the warrant holder. The buyer will have to repay the loan or make arrangements with the creditor to be able to dispose of the goods freely.
These mechanisms offer great flexibility when it comes to managing and adding value to your stocks.
Your guarantees as a user
The use of general shops and warehouse receipts is secured by a set of rules protecting depositors. The general shop operator is not free to do as he pleases; he has specific legal obligations. For a full understanding of obligations and liability of the general shop operatorTo find out more about the key security features that are essential for securing your goods and operations, see the dedicated article. Among the most important are :
- The obligation to insure deposited goods against fire.
- The obligation to ensure they are properly stored, with presumed liability in the event of a problem.
- The obligation to treat all depositors equally and to display its rates.
If, despite everything, damage occurs (loss, damage), the operator may be held liable, even though there are certain limits and grounds for exoneration laid down by law. The aim of this regulated framework is to establish a climate of trust, which is essential to the smooth operation of the system. For its part, the operator is of course entitled to be paid for its services, and has a number of guarantees to back this up, such as the right to retain goods or a lien in the event of non-payment.
When should you call a lawyer?
Although the system is designed to be effective, its implementation can raise legal issues. The intervention of a commercial lawyer can be useful in a number of situations:
- When negotiating or reviewing the deposit conditions offered by a general shop.
- To set up a complex financing structure using warehouse receipts as collateral.
- In the event of a dispute with the operator concerning the loss or damage of goods, the invoicing of costs, or the return of goods.
- Understand the implications of the different types of endorsement and secure your transactions.
Legal advice beforehand can often avoid costly complications later on.
The system of general warehouses and warehouse receipts offers interesting possibilities, but involves some legal subtleties. For a personalised analysis of your situation and to ensure that your interests are protected, our team is at your disposal.
Frequently asked questions
What exactly is a general shop?
A general shop is a private company approved by the State to store goods (raw materials, finished products, etc.) belonging to professionals and to issue negotiable instruments (warehouse receipts) representing these goods.
What is the main difference with a traditional warehouse?
The essential difference is the compulsory administrative authorisation and the legal capacity to issue warehouse receipts, which allow goods to be sold or pledged without having to move them.
What is the purpose of the warehouse receipt issued by a general shop?
It is used to represent the goods deposited and, thanks to its negotiable nature (by endorsement), it allows their ownership to be transferred or used as collateral for credit, without any physical handling.
How can the receipt-warrant help me to obtain credit?
By endorsing only the "warrant" part of the security to a lender (bank), you create a pledge on your stored goods, providing a solid guarantee for obtaining financing.
Can I sell my goods stored in a general shop without taking them out?
Yes, by endorsing both parts (receipt and warrant) of the document to the buyer, you transfer ownership of the goods, which remain physically in the warehouse, to the buyer.
Who is responsible if my goods are damaged or lost in the general shop?
In principle, the general shop operator is responsible for the preservation of the goods; in the event of damage, he is presumed to be at fault, unless he can prove an external cause (force majeure, inherent defect in the goods, etc.).
Are goods deposited in general shops automatically insured against fire?
Yes, the operator is legally obliged to insure the goods deposited against fire under its own insurance policies, except in the case of certain goods already covered by marine insurance.
Do I need special authorisation to place my goods in a general shop?
No, no special authorisation is required for dealers (industrialists, retailers, farmers, craftsmen). It is the general shop operator who must hold prefectoral approval.
What happens if I don't pay the storage charges at the General Store?
The operator has the right to retain your goods until they are paid for, and enjoys a lien. In the event of prolonged non-payment, he can even obtain authorisation to have the goods sold at auction in order to repay himself.
How can I collect my goods at the end of the depot?
You can recover your goods by presenting the operator with the full warrant receipt (both parts together) or the receipt alone if you have previously repaid or deposited the sum due to the warrant holder.Sources and related content
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