In addition to Invoice Factoring, ARFunding.org offers Work In Process Financing or WIP Financing to manufacturers based in the US. We are one of the few non-bank lenders that gives WIP financing.
What is Work In Process?
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. It is no longer raw material because it has undergone some processing in the production process. It is also not yet finished goods because more processing has to be done to put it into its saleable condition. WIP includes the items that are being fabricated or waiting for further processing or in storage.
ARFunding.org considers Work In Process funding if the client’s product is pre-sold to a credit approved customer and 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 components.