In addition to Invoice Factoring, ARFunding.org provides Work In Process Financing or WIP Financing to manufacturers based in the US. We are one of the few non-bank lenders that give WIP financing.
What is Work In Process?
Work in Process (WIP) is part of the inventory that the company is currently working on and is yet in the production process. Work in process is a phase in between the raw material and finished goods. It is no longer raw material because it has undergone some processing in the production process. The products are not yet finished. It has to undergo more processing to put it into its saleable condition. WIP includes items that are still waiting for further processing or storage.
ARFunding.org considers Work In Process funding if the client’s product is pre-sold to a credit approved customer. We are comfortable with the manufacturing process. The client is not buying a finished product. He is instead of purchasing various components, and either sending them to a manufacturer for assembly or assembling the product himself. In either case, we can buy the parts.