Non-dilutive CPG financing from $50K to $5M — inventory financing, revolving credit lines, and revenue-based capital for food and ecommerce brands. Underwritten on revenue, margins, and sell-through.
Link Shopify, Amazon, banking, and accounting. We underwrite revenue, margins, and sell-through velocity — not credit scores or hard assets.
We size a facility against your revenue and margins and disclose the rate up front — inventory line, revenue-based, or term.
Access capital to fund production and retail load-ins, and repay as inventory sells. Interest accrues only on what you draw.
Bulk purchasing raw materials reduces per-unit cost and locks in pricing. Larger production runs win better supplier terms and improve gross margin on every unit.
New retail partnerships need capital to manufacture and ship the initial order — from $10K for a regional chain to $500K+ for national distribution.
Fund promotional pricing, in-store demos, and retailer marketing. Trade spend typically runs 15–25% of wholesale revenue and is required to hold shelf placement.
Scaling packaging orders unlocks dramatic savings — one brand cut clamshells from $0.42 to $0.10 per unit by ordering 100K instead of 10K.
Texas Pecan Cakes spent $5,800 on targeted digital ads and generated $18,000 in revenue (3.1x ROAS). Capital scales proven channels profitably.
Bridge the 60–90 day gap between paying suppliers upfront and collecting from retailers on Net 30–60 terms.
Whims scaled from 60K to 120K unit runs to meet demand from 800+ doors, cutting per-unit cost by 18% while keeping retailers supplied.
Food brands build inventory 2–3 months ahead of peak — holiday gift sets, Valentine’s chocolate, summer beverages. $50K–$200K deployed before demand hits.
A single new SKU can cost $25K–$75K in R&D, packaging, initial runs, and buyer samples before generating a dollar of revenue.
A side-by-side comparison based on publicly available data and independent reviews.
| Dimension | Founderpath | Wayflyer |
|---|---|---|
| Product structure | Promissory note, revolving credit | MCA, term loan |
| Effective APR | 12–15% | 18–40%+ (varies by fee and term) |
| Term length | 12–36 months | 6–12 months |
| Repayment frequency | Monthly | Daily or weekly auto-debit |
| Revenue share rate | 5–8% of monthly revenue | 6–18% of daily revenue |
| Interest-only period | Up to 6 months available | None |
| Typical deal size | $50K–$5M | Up to $20M ($10K–$500K typical) |
| Platform required | None — any sales channel | Shopify or Amazon integration |
| Custom terms | Negotiable with investment team | Algorithm-generated, take-it-or-leave-it |
A side-by-side comparison based on publicly available data from Settle’s website.
| Dimension | Founderpath | Settle |
|---|---|---|
| Product structure | Promissory note, revolving credit | Simple-interest inventory financing + AP software |
| Effective APR | 12–15% | 12–24% (1.4%/mo example ≈ 17% APR) |
| Term length | 12–36 months | 30–210 days |
| Repayment frequency | Monthly | Biweekly or monthly |
| Interest-only period | Up to 6 months available | None |
| Typical deal size | $50K–$5M | $20K–$15M |
| Platform required | None — any sales channel | Shopify, Amazon, or Faire |
| AP/inventory software | Not included | Bundled (bill pay, POs, landed costs) |
| Custom terms | Negotiable with investment team | Standardized on underwriting |
CPG financing is non-dilutive capital for consumer packaged goods brands that need funding for inventory, retail expansion, and working capital without giving up equity. Providers underwrite on revenue, margins, and sell-through velocity — the metrics that actually predict whether a food or ecommerce brand can repay.
CPG founders deploy cash months before revenue is realized — raw materials, packaging, co-packer fees, and warehousing are all paid before a case ships. Scaling from 200 to 2,000 doors requires deploying capital six to eight weeks ahead of the first retail scan, so inventory financing is the difference between saying yes or no to the retailers knocking.
You pay suppliers on net-30, manufacture over weeks, ship, wait for placement, then collect on net-60 to net-90. A $50K monthly burn with a 90-day cycle needs $150K of working capital just to hold steady — and growth doubles or triples that.
Traditional asset-based lending assumes linear cash generation, but CPG revenue is lumpy and seasonal. Lenders advance 50–60% on finished goods, far less on raw materials and nothing on work-in-process — financing only a fraction of the actual working-capital need.
Fixed weekly payments ignore when customers actually pay. Draw $100K against a net-60 receivable on a 20-week schedule and you bleed $30K–$40K from operating cash before the receivable converts — every dollar of debt service is a dollar not funding inventory or marketing.
Slotting fees, promotional allowances, scan-downs, and co-op marketing are non-negotiable for premium distribution. A $3.50 wholesale unit at 60% margin can drop to 45% after $0.50 of blended trade spend; 500 new doors at $150 slotting is $75K before a single unit sells.
Retailers expand or delist on units per store per week. Building velocity takes promotional pricing, demos, and geo-targeted marketing — Texas Pecan Cakes turned $5,800 of marketing into $18,000 of revenue, the kind of capital-efficient velocity retailers respect.
At $1.6M revenue and 58% margin, Whims generates $928K of gross profit — ample to service structured debt while funding growth. A $5M brand at 60% margin needing $500K pays $60K–$75K a year in debt versus giving up 5% equity worth $2.5M in five years. When margins support debt, the math favors leverage over dilution.
Real CPG founders on how non-dilutive capital funded inventory, marketing, and retail expansion.
“We’re in a position today where capital is constraining our ability to grow. We have distribution opportunities we can’t afford to build inventory for.”
Borrow against raw materials and finished goods — lenders advance 50–80% of value, repaid as inventory sells through. Terms run 6–24 months, with funds released as you place purchase orders. Best for brands with proven sell-through and predictable production cycles.
Capital in exchange for a percentage of future revenue until a fixed cap. For $500K–$50M brands it typically costs 10–14% (1.10x–1.14x payback) and repays as 5–15% of monthly revenue — payments flex with seasonality while you keep full ownership.
A revolving facility you draw, repay, and redraw up to a limit, with interest only on the outstanding balance. The most flexible option for the 60–90 day gap between paying suppliers and collecting from retailers.
ABL requires a borrowing-base calculation, field audits, and strict reporting; a revolving facility offers a fixed limit on revenue and margins without ongoing collateral audits. For brands under $50M, revolving credit is usually faster, cheaper, and less burdensome.
CCC = Days Inventory Outstanding + Days Sales Outstanding − Days Payables Outstanding. A typical CPG cycle is 60–90 days; a 90-day cycle on $3M revenue means you need roughly $740K of working capital just to maintain operations.
Velocity is units per store per week, and it decides whether retailers reorder or discontinue. Grocery typically needs 2–3 units per store per week to hold shelf space. Capital funds the trade spend and marketing that drive velocity and unlock expansion.
Slotting fees, promotional discounts, demos, co-op ads, and rebates run 15–25% of wholesale revenue. A $2M wholesale business should budget $300K–$500K a year; underfunding trade spend costs distribution and velocity.
New doors need capital for production, packaging, shipping, and trade spend. A regional rollout (50–100 doors) typically needs $75K–$150K; national expansion (500–1,000 doors) can need $500K–$2M, plus 60–90 days of working capital before payments arrive.
DTC margins run 60–80% but require 20–40% marketing spend; wholesale runs 35–50% but scales revenue faster with tighter working-capital demands. Most successful brands blend both — wholesale for volume, DTC for margin and customer data.
Use debt when you have predictable revenue, positive unit economics, and need inventory or working capital — it preserves ownership and is cheaper than equity (10–14% vs 20–30% dilution). Raise equity for R&D, team, or unproven channels.
Most CPG lenders take a security interest in inventory, receivables, and IP, often at a 1.5x coverage ratio — borrow $100K, hold $150K of inventory value. As you scale you can negotiate away personal guarantees and lower coverage to 1.25x.
(DTC Revenue × DTC Margin + Wholesale Revenue × Wholesale Margin) / Total Revenue. $1M DTC at 70% plus $2M wholesale at 40% = 50% blended. Lenders use blended margin to assess debt capacity; below 40% makes financing difficult without exceptional velocity.
Pricing weighs revenue scale, margin profile, customer concentration, and cash-conversion cycle. A $5M brand at 50% margins, diversified partners, and a 60-day cycle prices at 10–11%; a $1M brand at 35% margins with single-retailer concentration prices at 12–14%.
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CPG financing refers to specialized funding solutions designed for consumer packaged goods companies that need capital to scale production, manage inventory, and expand distribution. The most common types include inventory financing (secured by stock on hand), revenue-based financing (repaid as a percentage of sales), revolving credit lines (flexible draw and repay structures), and asset-based lending (ABL) secured by receivables and inventory. Typical financing ranges span from $50,000 for early-stage brands to $5 million or more for established companies with proven retail traction. Unlike traditional bank loans that require years of profitability and hard assets, CPG-specific financing evaluates unit economics, gross margins, retailer relationships, and inventory turnover rates.
Inventory financing provides capital secured by your product stock, typically at 60-70% of the wholesale value of finished goods. Lenders require collateral coverage of approximately 1.5x the loan amount, meaning if you need $100,000, you should have at least $150,000 in inventory value. The process works through a draw mechanism where you access capital as needed rather than taking a lump sum. When you receive a purchase order from a retailer, you draw funds to manufacture the products, fulfill the order, and then repay the facility when the retailer pays your invoice. Interest accrues only on drawn amounts, not the total facility limit.
Yes, food and beverage brands are highly eligible for non-dilutive financing, provided they meet key metrics around gross margins (typically 40% minimum), monthly revenue ($40,000-$50,000+), and demonstrated product-market fit through retail distribution or strong DTC sales. FDA compliance, nutritional certifications, and food safety requirements are not barriers to qualification. Revenue-based financing is particularly well-suited for food brands because repayment flexes with seasonal sales patterns common in the industry. Brands with strong retail velocity, growing distribution footprints, and healthy repeat purchase rates qualify for larger facilities and better terms.
Most CPG financing providers require minimum monthly revenue of $40,000-$50,000 (annualized $500,000-$600,000), though the ideal range for competitive terms is $1 million to $50 million in annual revenue. Lenders evaluate gross margins (40%+ minimum, 50-65% ideal), month-over-month growth rates, and unit economics including customer lifetime value and contribution margin per product. A $2M revenue brand with 60% gross margins and expanding retail distribution will qualify for better terms than a $5M brand with 25% margins and declining sales. Brands below the $500,000 threshold can sometimes qualify with exceptional metrics such as rapid growth or exclusive retailer partnerships.
Yes, 10-14% annual interest is standard for non-dilutive CPG working capital facilities, with 12% representing the market midpoint for established brands. This rate is significantly more cost-effective than equity financing when you consider the true cost of dilution. Giving up 10-20% equity in a fundraising round may seem painless initially, but if your company exits at $50 million, that equity stake costs $5-10 million in foregone proceeds. By contrast, a $500,000 facility at 12% interest costs $60,000 annually, and you retain 100% ownership. Rates vary based on business strength: brands with 18+ months history, 50%+ gross margins, and diversified customer bases qualify at the lower end (10-11%).
The cash conversion cycle (CCC) measures how many days your capital is tied up in operations before converting back to cash. It is calculated as: Days Inventory Outstanding + Days Sales Outstanding - Days Payable Outstanding. A typical CPG brand might carry 45 days of inventory, wait 30 days for retailer payment, but pay suppliers in 15 days, resulting in a 60-day CCC. This means you need to finance 60 days of operations before revenue returns to your account. A 90-day CCC on $3M annual revenue means you need $740k in working capital just to maintain operations. Brands can improve their CCC by negotiating faster retailer payments, extending supplier terms, and improving inventory turnover.
Retail velocity measures units sold per store per week, and it is the single most important metric retailers use to evaluate product performance and expansion decisions. Most category managers have minimum velocity thresholds: falling below 3-5 units per store per week in grocery risks discontinuation, while exceeding 8-10 units signals expansion opportunity. Capital directly impacts velocity by funding trade promotions, in-store demos, slotting fees for premium shelf placement, and advertising that drives store traffic. Brands that deploy capital strategically to boost velocity in initial stores unlock geographic expansion and category growth.
Yes, refinancing existing Wayflyer, Uncapped, Clearco, or similar revenue-based financing facilities is common and often advantageous. Founderpath structures can replace high-cost facilities, supplement existing capital with additional capacity, or consolidate multiple facilities into a single line with better terms. Many brands initially use quick-approval platforms during rapid growth phases but later discover that rates of 15-20%+ or aggressive revenue share percentages strain profitability. For example, if you have $200,000 outstanding on a facility at 18%, Founderpath might offer a $400,000 facility at 11%, pay off the existing balance, and provide additional working capital.
No. Founderpath facilities are structured as non-dilutive financing, meaning you retain 100% ownership and control of your company. We do not take equity stakes, board seats, observer rights, or warrants. For founders building capital-efficient businesses with clear paths to profitability, debt is almost always superior to equity. Consider: a $500,000 equity round at a $5M valuation costs 10% ownership. If you exit at $50M five years later, that 10% is worth $5M. The same $500,000 as a revenue-based facility at 12% interest might cost $150,000 in total financing fees over 2-3 years, saving $4.85M in exit proceeds while maintaining full ownership.
Collateral requirements vary by facility type but typically center on inventory and accounts receivable with coverage ratios of approximately 1.5x the facility amount. Inventory-based facilities advance 60-70% of finished goods wholesale value, meaning $500,000 in inventory supports roughly $300,000-$350,000 in borrowing capacity. As your business grows, collateral scales proportionally: doubling inventory from $500,000 to $1 million increases borrowing capacity accordingly. Lenders verify collateral through monthly borrowing base certificates, periodic audits, and site visits for larger facilities.
The typical timeline from initial application to funding is 1-2 weeks, with approval decisions often made within 48 hours of receiving complete documentation. The process: initial application (1 hour), preliminary review and approval (24-48 hours), underwriting call to discuss business model and use of proceeds (30-60 minutes), term sheet delivery (same day), legal documentation and due diligence (3-5 days), and final funding upon document execution (1-2 days). To accelerate the process, prepare recent financial statements, detailed inventory reports with SKU-level values, accounts receivable aging reports, and a clear articulation of how capital will be deployed.
CPG financing capital is extremely flexible and can fund virtually any growth or working capital need: inventory purchasing for larger production runs, retail load-in costs including slotting fees and promotional allowances, trade marketing and promotional programs, advertising spend across digital and traditional media, packaging and design updates, working capital to smooth cash flow gaps, and production capacity expansion. The highest-return uses combine inventory investment with demand generation—funding a production run while financing the marketing to ensure rapid sell-through maximizes inventory turns and ROI.
Revenue-based financing (RBF) differs from traditional loans in several fundamental ways. RBF repays as a fixed percentage of monthly revenue (typically 5-15%), automatically adjusting with sales fluctuations, while traditional loans require fixed monthly payments regardless of business performance. RBF facilities typically do not have fixed maturity dates—they repay until a predetermined total is reached (usually 1.10x-1.14x the advanced amount). RBF also tends to have simpler covenant structures focused on revenue maintenance, while traditional loans often include restrictive financial covenants. The trade-off is cost: RBF effective rates range 12-18% versus 8-12% for traditional loans, but the flexibility often justifies the premium.
Minimum gross margins for CPG financing typically start at 40%, with ideal candidates demonstrating 50-65% margins. A 60% gross margin means that after covering production costs, you retain $0.60 per revenue dollar for operating expenses, marketing, and debt service. Margins below 40% create serviceability concerns because after manufacturing costs, distributor fees (20-30%), retailer margins (30-40%), and promotional allowances (10-15%), insufficient contribution remains for profitable operations and debt repayment. Premium positioning brands in categories like organic, functional, or specialty diet products naturally achieve higher margins (60-70%) versus commodity categories (30-40%).
Yes, CPG brands selling on Amazon are eligible for financing. Amazon revenue is verifiable through direct API connections to Seller Central, providing real-time sales, inventory, and customer data that traditional retail channels cannot match. FBA (Fulfilled by Amazon) inventory is eligible collateral and in some cases receives higher advance rates due to reduced obsolescence risk and faster turnover. Underwriting evaluates Amazon-specific metrics including revenue concentration, product reviews and ratings, advertising efficiency (ACoS), and inventory performance scores. Brands can use financing to fund inventory for Prime Day, optimize advertising during high-converting periods, and diversify into retail or DTC channels.