CPG Brands - Need Cash Fast? 5 Alternative Funding Sources You Need to Know Now
In the fast-paced world of consumer packaged goods (CPG), access to quick capital can be essential for maintaining momentum and seizing growth opportunities. Recognizing this need, it's crucial for CPG brands to explore alternative funding sources beyond traditional avenues, such as banks.
Five such sources stand out as invaluable options for those seeking rapid cash infusion, each has a specialty: working capital, inventory financing, revenue-based financing, asset-based financing, accounts receivable financing (factoring), bridge loans and lending networks. Embracing these alternative funding channels empowers you and your CPG brand to navigate cash flow challenges with agility and continue their journey towards success in the competitive market landscape.
Here are 5 options to know now:
Kickfurther
Imagine a funding platform that not only tackles your biggest expense – your inventory – but also offers flexible payment terms, liberating your capital for business expansion. With freed-up funds, fuel your growth with enhanced product development, dynamic advertising, and other strategic ventures, propelling your business to new heights.
Settle
Keeping a close eye on inventory and cash flow is crucial for any business, especially for those aiming to scale up. Effective planning for profitability is key to sustainable growth. Settle offers flexible financing options that can be instrumental in accessing working capital. For founders looking to expand their e-commerce and DTC brands, Settle provides modern AP automation and PO tools, alongside transparent, non-dilutive financing solutions. Partnering with the right financing service, like Settle, and maintaining a focus on profitable growth can be pivotal in building brands that resonate with customers.
Wayflyer
Wayflyer specializes in addressing the funding needs of businesses that sell physical products via wholesale or ecommerce, providing solutions to critical working capital challenges that often hinder growth. They bridge the gap between the time the PO is received and the products are paid for by your retail customers. By optimizing cash flow, Wayflyer empowers its clients to capitalize on new opportunities, whether it's expanding inventory, ramping up marketing efforts, or enhancing overall profitability and resilience.
Onramp
Onramp Funds' innovative financing platform is purpose-built for CPG Brands with a healthy Ecommerce business. Their financial solutions fund your working capital needs based on your revenue, freeing your existing capital to invest in growth. With Onramp, you don't pay for inventory until you receive your sales deposits. Funding can happen within 24 hours too.
The leadership team includes highly successful entrepreneurs behind ShippingEasy and CSIdentity and growth leadership with ShipStation, Shipworks, and Stamps.com.
Primary Funding
The personal attention you receive here will remind you of certain traditional banks, but they are all about being an alternative lender for your CPG Business. Like the other solutions profiled here, applying is easy, but you have quite a few more solution options to choose from depending on your needs and situation. The ability to customize your funding solution, paired with good people that are ready and willing to help, is how these folks stand out.
Don’t know where to start? Feel free to reach out to Phil Gorman (phil@cpgbrains.com) to get pointed in the right direction. Some of the lenders listed are paying Partners of CPG Brains.