A non-bank lender is offering Work in Process Financing to US & CA Based Manufacturers and WIP Funding.
What is WIP?
Work in Process (WIP) is the part of the inventory that is currently being “worked on” and is yet in the production process. Work in Process is a stage in between the raw material and finished goods. WIP is no longer raw material because the material has undergone some processing in the production process. Work in Process is also not yet finished goods because more processing has to be done to the material to put into its saleable condition. Also, WIP includes items that need fabricating or waiting for further processing or in storage.
What is Work In Process Financing?
WIP Financing considers financing Work In Process if the client’s product is pre-sold to a credit approved customer. Certain factoring companies are comfortable with the manufacturing process. In WIP Financing the client is not buying a finished product. Instead of purchasing various components and sending them to a manufacturer for assembly, the client assembles the product by own. In either case, the factors can buy the parts for its client. Thus, the unfinished product can be leveraged for funding if the product is pre-sold to a creditworthy customer and business has a robust manufacturing process.
Industries that Can Get WIP Financing are:
- Ammunition & Firearms
- Apparel and Footwear
- Book Publishers
- Construction Materials
- Communications Equipment
- Food Manufacturing & Food Distribution
- Furniture Manufacturers
- Home Furnishings
- Hospitality & Hotel Consumables
- Metal Fabricators
- Military Hardware
- Oil & Gas Well Servicing
- Printing Supplies
- Promotional Material
- Store Display Manufacturers
- Wine & Spirits
Also, if you are a manufacturer producing for the US government or military, we at WIP Funding have deep experience in meeting our government contractor clients working capital needs. We understand the “culture” of the FAR; dealing with and receiving payment by government entities at all levels.