The CPG capital ecosystem map

Navigating the CPG capital maze

CPG founders secure the right capital by visualizing the financial ecosystem as distinct "lanes"—such as inventory financing, invoice factoring, or revenue-based advances—rather than relying on a single lender type. Navigating this ecosystem effectively requires matching the specific capital instrument to the specific stage of your cash conversion cycle. When founders view the market as a holistic map rather than a series of disconnected urgent decisions, they can lower their cost of capital and protect their equity.

The fragmented landscape

The modern funding environment in 2026 is a complex web of banks, fintechs, and private credit lenders, making it difficult to identify the best capital source for a specific growth stage. A decade ago, a business might have simply gone to their local bank branch. Today, options have splintered into dozens of specialized verticals.

There are lenders who only fund inventory in transit, fintechs like Wayflyer or Clearco that specialize in ecommerce revenue, and private credit funds that focus on accounts receivable for big-box retail. This fragmentation creates a paradox of choice. Finding the specific provider that understands the nuances of a consumer packaged goods (CPG) business model is increasingly difficult.

Founders are often left piecing together a capital stack from disparate sources. This involves managing multiple logins, covenants, and repayment schedules that rarely align with actual cash flow.

The central interchange

A centralized marketplace acts as a financial interchange that aggregates offers from banks, fintechs, and private credit lenders to provide side-by-side term comparisons. Successfully navigating the capital map requires comparing terms through such a platform to ensure you do not overpay for speed. By seeing traffic in all lanes simultaneously, founders gain the transparency needed to make an informed decision.

This approach shifts the power dynamic back to the borrower. Instead of hoping for an approval from a single institution, you can evaluate competing offers based on key metrics. In a volatile economic climate, the ability to pivot between different types of capital—moving from revenue-based financing to a term loan, for example—can differentiate between stalling out and breaking through.

The inventory line: financing production and orders

This lane provides capital specifically designed to manufacture goods and fulfill orders, preventing cash gaps when big retailers place demands on your supply chain. For CPG brands, the greatest strain on cash flow often occurs weeks or months before a sale is made. The inventory line is distinct because lenders in this space view your physical goods not just as collateral, but as the primary asset backing the loan.

Distinguishing the products

The main difference is that PO financing funds production before goods ship, while inventory financing leverages existing stock to unlock cash.

• Purchase order financing: This is often supplier-pay based. It is the solution for receiving a massive order from a retailer that exceeds your current cash on hand. You can compare  purchase order financing  options specifically for these retail transactions.

• Inventory financing: This option uses goods sitting in a warehouse as collateral. A lender appraises the liquidation value of that inventory and advances a percentage of its value (typically 50% to 80%) to release trapped capital. You can explore inventory financing to unlock the value of your stock.

Competitor landscape

Bank-backed options often provide more scalable rates for larger volumes, while specialized lenders focus on supply chain assets. The market is divided between tech-enabled lenders who move fast but charge higher rates, and traditional banks that offer lower rates but struggle to underwrite the volatility of CPG inventory.

Crowdfunding inventory platforms like Kickfurther can validate demand but may not scale efficiently for brands doing millions in revenue compared to institutional credit. Specialized asset-based lenders, such as Paragon Financial Group, understand the liquidation value of shelf-stable goods. They are often willing to lend where traditional banks will not.

Retail timelines

Accessing this lane ensures compliance with strict delivery windows for  retail partners like Walmart  or Target. Major retailers operate with punitive compliance fines for late or incomplete shipments (OTIF). If a CPG brand lacks the liquidity to pay a manufacturer on time, production delays ripple through the supply chain.

Inventory and PO financing act as an insurance policy against these delays. By securing the capital to produce goods immediately upon receiving a PO, you ensure that your supply chain operates at the speed of retail demand.

The Bridge advantage

Bridge curates a specialized network of lenders who specifically understand retail vendor guidelines to avoid the "generalist" gap found with standard bank loans. A local community bank may look at a million-dollar PO from a major retailer and see risk. A specialized lender sees a guaranteed receivable from an investment-grade debtor. We focus on lenders who understand the CPG cycle and value inventory appropriately.

The factoring line: unlocking cash from invoices

The factoring line accelerates cash flow by converting unpaid invoices (accounts receivable) into immediate working capital to bridge the gap between shipment and payment. Net-30 or Net-60 payment terms are standard in wholesale. For a growing CPG brand, having capital locked up in unpaid invoices is a major bottleneck. Factoring removes this friction by advancing the majority of the invoice value immediately.

Factoring vs. AR lines

Traditional factoring involves selling the invoice to a third party, whereas AR lines of credit involve borrowing against the ledger value.

• Traditional factoring: The factor purchases the right to collect payment. They typically advance 80-90% of the invoice value upfront.

• AR lines of credit: You retain ownership of the invoices. The lender uses your accounts receivable aging report to determine a borrowing base, similar to a credit card limit.

Comparing providers

Specialized lenders offering  working capital solutions  provide flexibility for complex retail ledgers that automated fintechs may lack. Automated platforms often rely on rigid algorithms that sync with accounting software. These algorithms can get confused by CPG complexities like dilution (deductions for returns or marketing fees) and contra-revenue (accounting entries that reduce gross revenue to net revenue).

Human-led underwriting understands that these retail deductions are part of doing business. They can distinguish between a credit risk and a standard trade spend, ensuring liquidity remains available.

Speed to liquidity

Factoring aims to provide immediate liquidity within as little as 24 hours to close the time gap between shipment and payment. In the CPG world, velocity is everything. Immediate access to cash allows you to pay for the raw materials for your next order as soon as you ship the current one, creating a virtuous cycle of growth.

The revenue-based route: funding growth with sales

 Revenue-based financing  (RBF) offers speed and flexibility by advancing capital repaid via a fixed percentage of daily sales. This model mirrors the erratic cash flow of modern commerce. If you have a slow week, your repayment amount drops; if sales spike, you pay back faster.

The mechanism

Revenue-based financing mechanisms advance capital that is repaid via a fixed percentage of daily sales, aligning repayment with revenue peaks and valleys. Providers like Wayflyer, Clearco, Capchase, and Pipe offer fast access with no fixed monthly payment. This capital is often used alongside corporate card solutions like Brex to manage operational spend.

The underwriting is almost entirely algorithmic, connecting directly to bank accounts and sales platforms. This "embedded finance" model means offers are often presented before you even ask. Repayment is handled automatically by intercepting a percentage of daily sales.

Platform-native options

Integrated lending solutions offer convenience by deducting repayments directly from payouts.

• Amazon Lending: Integrates directly for Seller Central users. It ties financing strictly to Amazon performance.

• Square Loans: Offers automated capital based on processing volume from card swipes.

• Payability: Focuses on daily payouts for marketplace sellers to smooth cash flow, acting as a liquidity accelerator.

Best use cases

This capital is most effective for high-margin digital activities like ad spend or ecommerce spikes. Because RBF is generally more expensive than bank financing when calculated as an APR, it should be deployed where the ROI is highest and fastest. Using RBF to fund a Facebook ad campaign that converts within 48 hours is a strategic win; using it for long-term equipment is often a mistake.

The merchant cash advance danger zone

The merchant cash advance (MCA) lane carries high costs and significant risks, often trapping businesses in a cycle of debt if not carefully managed. MCAs are technically the purchase of future sales at a discount, not loans. This distinction allows them to bypass many usury laws and banking regulations.

Factor rate math

A factor rate is a multiplier of the advance amount, not an interest rate. For example, a 1.2 factor rate on a $10,000 advance means you repay $12,000. If this is collected over 3 months, the effective APR can exceed triple digits. Founders must see how  factor rates compare to APR  to understand the true cost.

Regulatory warnings

The CFPB and other regulators have issued warnings regarding the opacity of pricing structures and the risks of stacking positions. "Stacking"—taking a second advance to pay off the first—leads to a debt spiral where a majority of daily revenue is diverted to debt service.

Refinancing risks

The SBA has tightened rules regarding the refinancing of MCAs in updated 2025 guidelines. Founders can no longer easily roll high-cost MCA debt into cheaper government-backed loans. According to  SBA SOP 50 10 7.1 , the agency requires strict proof that the original debt was used for eligible business purposes and meets specific seasoning requirements.

Optimizing your capital stack

A specialized marketplace allows founders to compare offers from every lane—banks, fintechs, and private credit—to choose the most efficient route for their specific margins. Just as you wouldn't book a flight without comparing airlines, you shouldn't book capital without comparing lenders.

Generalist vs. specialized marketplaces

Generalist marketplaces like Fundera, Nav, and NerdWallet offer broad access but often lack the depth to handle complex CPG needs. These aggregators are effective for simple term loans but may rely on automated matching that fails to account for supply chain finance nuances.

Bridge curates a network specifically for inventory-heavy businesses. We focus on lenders who understand the value of raw materials and retail purchase orders. This specialization results in offers relevant to the CPG business model.

The power of choice

A single application can surface multiple distinct offer types rather than just one product. You might apply thinking you need a term loan, but the marketplace might reveal that PO financing is cheaper and preserves equity. Or you might find that a hybrid of inventory financing and a small line of credit provides more liquidity than a single revenue-based advance.

Outcome

The optimal outcome is a capital stack where you choose funds based on total cost, speed, and strategic fit rather than availability alone. Use expensive, fast money for short-term opportunities and cheap, slow money for long-term growth.

FAQs

Q: What is the difference between purchase order financing and inventory financing?

A: Purchase order financing pays suppliers directly for production to fulfill a specific customer order, while inventory financing leverages existing stock sitting in a warehouse as collateral to release working capital.

Q: How fast is funding?

A: Bridge aims to provide multiple competitive offers within 48 hours, though total funding time varies by product (e.g., revenue-based financing can be as fast as 24 hours).

Q: Do I need a personal guarantee?

A: It varies by lender; asset-based options like PO financing sometimes focus purely on collateral, while most small business term loans and lines of credit will require a personal guarantee.

Q: Can I use these funds for marketing?

A: Yes, working capital and revenue-based options are frequently used for growth marketing because the quick feedback loop of ad spend aligns well with shorter-term financing.

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Next steps

CPG founders should build a capital strategy that scales with their ambition by using tools that visualize the entire ecosystem. Get started with  financing for CPG brands  to see your options.  Apply now  to compare offers from across the entire ecosystem.