Work-in-progress – Are you covered?
Work in progress describes the costs of unfinished goods that remain in the manufacturing process.
If you produce custom-made products, you may be exposed to losses in the event your customer fails prior to delivery.
Have you bought special materials and tailored them for a specific contract?
Incurred labour costs?
Spent time designing?
Only for the customer to enter administration or the project to collapse?
Materials and partially finished goods are shown in your current assets because there is a reasonable expectation, that they will become marketable products that can potentially turn into cash.
Are you aware of how much these equate to, can the raw materials be sold on?
How much lead time is there between receiving the order to despatch?
Work in Progress (WIP) refers to the raw materials, labour, and overhead costs incurred for products that are at various stages of the production process.
What about the Finished Goods waiting to be despatched?
Having gone through the production cycle, they’re still in the company’s hands, maybe not for long but they are still part of the current assets waiting to be distributed.
Would you like to cover those costs?
Adding Pre-delivery/Work in Progress and Finished Goods Cover to your policy covers your production costs, net of your profit margin, which you cannot recoup.
This support is provided in conjunction with a Trade Credit Insurance Policy.
Ensuring your Trade Credit Policy is tailored to the way you work as a business provides that extra layer of protection.
Our Trade Credit Specialist
Maggie Brotherson has worked within Trade Credit for 30 years, a specialist within her area she has a clear and determined passion for doing the best for businesses. Trade Credit Insurance provides businesses with protection against failure and substantial delays in receiving payments. What may seem catastrophic at first is bearable with a policy structured to fit your business requirements.
Contact Maggie for any Trade Credit enquiries on 07497 199 978 or email her at maggie.brotherson@konsileo.com
