A/R Finance & Factoring Terms GLossary

What isWork in Process (WIP) Financing

Work in Process or WIP Financing (not to be confused with work in progress, a term used in construction or the building trade) is the portion of your inventory that is being “worked”. Because of its unsalable condition, most lenders value WIP inventory lower than raw or finished (salable) inventory. Production Financing describes the same.

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