What You Should Know About Work-in-Process Financing

You've worked hard to build your company's good credit. But if you've maxed out your credit limits at traditional financial institutions or are unable to increase your credit line for a one-time transaction, purchasing options can seem nonexistent. This could mean missed opportunities to fulfill an important customer purchase order or hinder other short-term financing needs like upfront deposits or cash on delivery (COD) payments. Some suppliers may even hold shipments unless you can guarantee payment.

Fortunately, business owners can use their good credit to qualify for Work-in-Process (WIP) financing to make the necessary purchases to drive growth — and without compromising the working capital needed for day-to-day operations.

How Does Work-in-Process Financing Work?

Small and mid-sized businesses with strong credit can finance supplier payments, regardless of the supplier's location or whether the goods are for a direct customer sale or inventory for resale. Town and Country and Peoples Prosperity Bank's financing partner, Liquid Capital, provides approved businesses with a letter of credit or wire transfer payments to suppliers to receive their goods through its Purchase Finance Program. Once you receive the goods, pay the WIP invoice in the normal course of business, as stated in the agreement.

Similar to purchase order (PO) financing, WIP financing provides suppliers payment when the company, versus a third-party manufacturer, produces the finished product and delivers it to their customer. However, unlike PO financing, WIP financing provides a 5-step cash flow solution based on your credit health.

Step 1. You provide a purchase order to Liquid Capital.

Step 2. Liquid Capital issues a purchase order to your supplier.

Step 3. Your supplier sends Liquid Capital an invoice.

Step 4. Liquid Capital pays your supplier and sells you the goods.

Step 5. You pay Liquid Capital as per agreed payment terms.

The Purchase Finance Program offers a convenient, easy way to fund one-time purchases. It's the perfect financing match for manufacturing, assembly, value-added, and repackaging business processes.

Work-in-Process Financing Benefits

Secure the financing you need to grow your business without limiting cash flow. Companies that use WIP financing are in a prime position to:

• Purchase necessary goods
• Cover costs of goods in-transit
• Participate in supplier discounts
• Demonstrate the ability to fulfill customer purchase orders

Similar to PO financing, you can customize your financing needs based on transactions, order size, seasonal issues, or other details relevant to your business goals. By having ready access to WIP financing, you'll be prepared to take advantage of timely business opportunities without interfering with existing working capital.

Why Choose Liquid Capital as a Financing Partner?

Liquid Capital is a full-service working capital and trade finance company. They encourage credit strong businesses to leverage opportunities as they arise with WIP financing.

Approved business enjoy:

• 24/7 Online account access
• Full reporting transparency
• Tailored solutions to meet specific business needs
• Access to funding with no rigid contracts, hidden costs, or conditions on storage or delivery
• Working with decision-makers who understand the local market

And much more!

How Do I Get Started?

Let your good credit help your business achieve its strategic goals. Increase cash flow by using WIP financing to grow your company. Contact Town and Country and Peoples Prosperity Bank's Service Solution Center, visit a convenient branch location, or meet with a Commercial Business Banker today!