Construction (WIP) Work-in-Progress refers to the building of long-term assets that are not yet complete. For example, if a company is constructing an addition to its structure and the work is only partially complete, the amount spent so far would be on record as Work-in-Progress. You may also refer to this as Construction in Progress, or Construction Work-in-Progress (CWIP). In CWIP, you record the account in the balance sheet as a long-term asset.
Work-in-process is different. A work-in-process refers to the point in the manufacturing process of production of raw goods into finished goods. However, these are not yet complete. There is value to these raw goods which you can leverage for funding.
Construction factoring is one of the few non-bank lenders offering WIP financing. Many factors are part of funding a WIP, including close evaluation of the manufacturing process to ensure a quality product for on-time delivery. We can leverage our manufacturing expertise to help mitigate risk for all parties involved.
We have two groups at Construction Factoring.com. One does the WIP that means Construction (WIP) Work-in-Progress, and the other does production financing or (WIP) Work-in-Process funding.
Whether you’re doing progress work (and pay) on a building job or if you’re a manufacturer that like to use your WIP components for funding, give us a call at 866-355-8245, e-mail us to the right or chat with us now.