The following are the main functions of warehouses:-

(i) Exhibition and Selling-Another incidental service which warehouses offer is exhibition and selling the goods on behalf of their customers.

(ii) Storage-This is the main purpose of a warehouse as we have already seen.

(iii) Financing-one of the functions of a warehouse is to advance money to the owners of the goods up to the value of the goods deposited. The owners of the goods can also borrow from banks on the security of warehouse receipts.


(iv) Sorting, Packing, Weighing, Labeling, etc.-

These are some of the incidental services, for preparing the goods for the market, which warehouses render to merchants.

(v) Acting as Forwarding Agents-some warehouse- owners actually dispatch the goods on behalf of the exporters.

Dock or Warehouse Warrant


Receipts given by the dock company which maintains warehouses are known as dock or warehouse warrants. They are generally made out in the following form.

Ware House Company’s certificate

This is merely a receipt certifying that are the goods are held by the ware-house keeper. It is usually non-transferable; through in some cases it is transferable by the endorsement. The mere statement as to the holding of the goods on the behalf of the owner in no sense makes it a document of title.

It is for this reason that this certificate is not considered to be a proper security for a loan by the bank.