What if You Receive A Purchase Order From Your Customer and You Need Financing for Manufacturing?
Not All Lenders and Financing Companies Will Fund Manufacturers, Production Facilities, and Job Shops. Purchase Order Financing for Manufacturing Is a Specialty Lending Niche. WIP Funding With Our Long Experience in Work in Process Financing Can Help.
What Questions You Need to Answer About Your Product, Process, People, and Customers:
1. What Complexity and Timeframe Are Associated with Your Process?
There is a need to provide a list of raw materials, their vendor sources, their lead times and their credit terms. Also, this requires a diagram or spreadsheet showing all costs and labor needed for each stage. Don’t forget about the packaging and logistics costs.
2. Do I have a Firm Purchase Order from My Customer?
The details of the Purchase Order from your creditworthy customer with all specifications shop drawings and vendor agreements is another critical component. These transactions “work backward.” What do we mean by that term? All deals start with your creditworthy client issuing you a Purchase Order for goods that can be produced with sufficient gross profit and within an attainable timeline.
3. What is Your Client’s Creditworthiness and Vendor Policies?
Financing for Manufacturers or Work In Process Funding is transaction driven. At WIP Funding we have a long history in funding manufacturing and dealing with almost all US-based large companies as Account Debtors to our clients. Each of us has a production background in garments, minerals, chemicals, metalworking or food production. There is probably not a situation that we have not also experienced. We will only fund you if you can safely make money with the production capital we offer you.
4. What is Your Manufacturer’s Background and Experience?
WIP Funding is a non-bank lender and is a group of entrepreneurs just like you. We can overlook the fact that you may have bruised credit or be a startup. In fact, we weigh our decision to help you with your working capital needs more based on your skillset and deep industry experience. We are betting on you and your people’s ability to perform. All we need if for you to show us your expertise and get us excited too about your business’ prospects.