Cash Flow can have a negative impact by the work in process steps of inventory conversion without the proper financing.
Using WIP Funding or Production Finance, these shortfalls can be improved upon and even alleviated. Work In Process Funding can provide working capital to purchase needed components for your production line.
We understand the issues of ordering and receiving raw materials from numerous vendors and suppliers, then converting them to a finished product, and then the logistics of shipping them to your customer.
WIP Funding considers financing Work In Process if the client’s product is pre-sold to a customer with credit approval. Also, if we are comfortable with the manufacturing process. We will typically buy the needed components for our customer, and either sending them to a manufacturer for assembly, or they will assemble the product themselves. In either case, we can buy the components for you our client.