Glossary · Reading the business
Work-in-Process
In short
This refers to goods that have begun the manufacturing process but are not yet finished products. It's part of a company's inventory and represents costs incurred but not yet realized as revenue.
What it means in a deal
In manufacturing or service businesses, Work-in-Process (WIP) can be a significant current asset. During due diligence, assess the value and salability of WIP, as it affects the business's working capital needs and potential collateral value. Understand the typical cycle for WIP to become Finished Goods, as this impacts cash flow.
Related terms
Common questions about Work-in-Process
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Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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