Funding Solutions Archives - Page 2 of 2

In 2025, small and mid-sized businesses, particularly those in the consumer packaged goods (CPG) industry, are seeking more flexible funding options to manage inventory and cash flow. Traditional loans often come with stringent repayment terms, personal guarantees, and limitations on how funds can be used. Two emerging funding options gaining traction are Revenue-Based Financing (RBF) and Inventory Financing with Kickfurther. Let’s take a closer look at how these options compare and which might be the best fit for your business.

Revenue-Based Financing

Revenue-Based Financing provides businesses with capital in exchange for a percentage of future revenues until the agreed-upon repayment amount is met. This model is particularly appealing for CPG brands that experience seasonal fluctuations, as it allows for flexible repayment schedules that align with sales performance.

Advantages of Revenue-Based Financing

Flexible Payback Structure: RBF repayments are directly tied to sales performance. If a company experiences a strong revenue month, it pays back more; during slower months, it pays back less. This flexibility makes RBF a useful option for businesses with cyclical or seasonal sales patterns.
Upfront Capital: Businesses receive significant upfront funds that can be allocated toward large inventory purchases, marketing campaigns, or other necessary expenses, leveraging future revenue for immediate growth.
Non-Dilutive: Unlike venture capital or equity financing, RBF does not require business owners to give up ownership stakes in their companies.

Disadvantages of Revenue-Based Financing

Limited Funding: The amount of capital available is directly tied to revenue. Businesses with lower sales volumes may struggle to secure the necessary funds to support large-scale inventory needs.
Best for Short-Term Investments: RBF is ideal for expenses that quickly generate returns, such as inventory and marketing. It is not a suitable solution for ongoing operational expenses like staffing.
Costly Repayments: Since payments are taken directly from sales revenue, businesses must be prepared for consistent withdrawals. This can create a cash-flow strain, especially if revenue projections are not met.

Inventory Financing

Inventory financing allows businesses to leverage the resources of a financing partner to pay for inventory production. This type of financing is especially helpful for businesses that experience significant delays between paying for inventory and receiving payment from future sales.

With inventory financing, the products produced act as the collateral for the financing, which means that if the business reports an inability to repay the funding, the inventory can be sold to cover the debt. This can provide a level of security for the financing partner, which can result in more favorable terms for the business.

One of the key benefits of inventory financing is that it can be customized to address a business’s exact manufacturing, shipping, and sales timelines. Some providers even offer payment terms that align with natural cash flow cycles, meaning that no payment is required until the inventory sells. This can help to improve a business’s cash flow and reduce the risk of running out of working capital.

Inventory financing can also be helpful for businesses that want to receive volume-based discounts by placing larger orders to support all of their sales channels. This works best when done on a regular basis, such as quarterly, and can help to prevent stock-out issues that can stifle growth.

Inventory Financing with Kickfurther

For businesses in the CPG space looking for a more tailored inventory funding solution, Kickfurther presents a unique alternative. Unlike traditional financing or revenue-based, Kickfurther enables companies to secure up to 100% of their inventory costs with payment terms that align with actual sales performance.

Why Choose Kickfurther?

No Immediate Repayments: Businesses do not start paying back until their inventory sells, allowing them to manage cash flow more effectively.
Non-Dilutive Capital: Kickfurther does not require business owners to give up equity, preserving ownership and control.
Not Considered Debt: Since Kickfurther funding is not classified as a loan, it does not appear as debt on financial statements. This can be advantageous when seeking additional funding or negotiating valuation with investors.
Fast and Large-Scale Funding: Kickfurther can fund entire inventory orders quickly, helping businesses meet supplier deadlines and keep up with demand.

How Kickfurther Works

Kickfurther connects businesses with a community of buyers who fund their inventory needs. Once funded, businesses receive their inventory without taking on debt. As sales occur, businesses repay buyers, typically with an agreed-upon profit margin. This structure ensures that payments are only made as inventory is sold, reducing financial strain on the business.

Which is Best for Your Business?

Feature	Revenue-Based Financing	Kickfurther Inventory Financing
Repayment Structure	Fixed percentage of monthly revenue	Payment made only as inventory sells
Use of Funds	Inventory, marketing, and growth-related expenses	Strictly for inventory purchases
Dilution	Non-dilutive	Non-dilutive
Debt Classification	Considered a liability on financial statements	Not classified as debt
Speed of Funding	Relatively quick	Very fast, aligns with supplier needs
Risk Level	Moderate, requires strong sales to avoid cash flow issues	Lower risk, since repayments align with sales

Final Thoughts: Which Option is Right for You?

For CPG brands and product-based businesses, maintaining sufficient inventory levels is critical for growth. Kickfurther’s ability to provide up to 100% of inventory funding without immediate repayments can be a game-changer for a growing brand. However, brands that need capital for multiple operational needs beyond inventory may find Revenue-Based Financing to be a more versatile solution.

As brands navigate 2025, the demand for flexible, growth-oriented financing solutions will continue to rise. Whether you choose Revenue-Based Financing or Kickfurther, the key is selecting the funding option that best aligns with your sales cycle, growth strategy, and cash flow management needs.

This post was last updated on June 9, 2026, by our partners at Bridge; the original post was published on Oct. 20, 2021.

Retailers, wholesalers, and seasonal businesses often turn to inventory financing when they need to meet demand without disrupting cash flow. But traditional inventory financing isn’t always easy to qualify for, and it’s not always the right fit. The good news is there are several inventory financing alternatives and financing options worth knowing before you commit to any one path.

Quick answer

Beyond traditional inventory financing, product brands have five alternatives worth comparing: purchase order financing, crowdfunding and consignment marketplaces, bank loans, a business line of credit, and personal loans. The best financing option depends on where in your production and sales cycle you need capital, how strong your credit history is, and whether you have a committed buyer.

To qualify for most types of inventory financing, businesses should have at least one year in business, a sales history, and a reliable inventory management system. But depending on your stage and business model, one of the financing solutions below may be a better match than standard inventory financing alone.

What are financing alternatives to fund inventory expansion needs?

Businesses need access to capital in order to grow. Even well-established, profitable small businesses can find themselves cash-constrained when it’s time to build inventory. The right financing option depends on where in your production and sales cycle you need capital, how strong your credit history is, and whether you have a committed buyer or are building inventory speculatively. Let’s explore five inventory financing alternatives that can fund your expansion needs.

Financing option	How it works	Best for	What underwriting looks at
Purchase order financing	Funds production against a confirmed retail PO, often up to 100% of COGS, paid to your supplier	Brands with confirmed retail orders they can’t produce on their own	The purchase order and the retailer’s credit, not yours
Crowdfunding / consignment	Pools capital from many backers; with Kickfurther, Buyers fund inventory on consignment and you pay as it sells	Brands with an engaged community building inventory ahead of a launch	Your product and sales channel
Bank loan	A lump sum repaid in fixed monthly payments at a set interest rate	Established businesses with strong credit and clear inventory needs	Your credit score, collateral, and time in business
Business line of credit	Revolving capital you draw and repay as needed; you pay interest only on what you use	Recurring or seasonal inventory cycles that need flexibility	Your business credit history
Personal loan	Personal financing applied to business inventory; no collateral, but higher rates	Early founders without business credit, as a short-term bridge	Your personal credit score

Purchase order financing

Purchase order financing is one of the most relevant inventory financing alternatives for product brands selling into major retail. Rather than borrowing against stock you already have, PO financing funds the production of inventory you’ve been ordered to make.

Here’s how it works:

A retailer issues you a purchase order
You don’t have the capital to produce and ship it.
A PO lender funds your cost of goods, often up to 100%, directly to your supplier or co-packer.
When the retailer pays, the lender is repaid and you keep the margin.

For Walmart and Sam’s Club suppliers specifically, Bridge runs the official Purchase Order Financing Program for both retailers. Bridge funds up to 100% of COGS so suppliers can produce and ship without draining operating cash. Suppliers share their PO and basic financials, receive loan terms within 48 hours, and get funded the same day approval comes through. Kickfurther is proud to be one of the funding partners selected to underwrite financing requests on the Bridge platform.

PO financing is worth exploring if you have confirmed retail orders you can’t produce without outside capital. It’s not a fit for speculative inventory builds or businesses without a committed buyer.

Crowdfunding

Small businesses can raise money for inventory expansion using crowdfunding. Individuals and organizations create campaigns that backers or buyers choose to support. Crowdfunding pools together capital from multiple contributors, which can add up quickly without taking on a traditional small business loan.

Kickfurther takes a different approach: a marketplace where Buyers purchase inventory on consignment. You get the capital to purchase inventory without giving up equity, and payments align with when your inventory actually sells rather than on a fixed schedule. Most crowdfunding platforms charge fees for raising funds, so it’s worth factoring that into your cost of capital calculations.

Crowdfunding tends to work best for brands with an engaged community or a compelling product story. It requires marketing effort to run a successful campaign, and results aren’t guaranteed. For brands that need to move quickly on a confirmed order, it’s usually too slow. But for building new inventory ahead of a launch or retail pitch, it can be a cost-effective alternative to debt.

Bank loans

Bank loans provide small business owners with a lump sum that can be used to purchase inventory or cover general business financing needs. In some cases, the application process can take one to three months to complete, which makes them a poor fit for time-sensitive inventory needs.

Qualifying for a small business loan can be challenging for newer companies. Banks typically require collateral or a personal guarantee, along with a solid credit history, documented time in business, and proven sales. Your credit score plays a meaningful role in what rates and terms you can access. Lenders will also evaluate the value of your inventory and other assets when assessing collateral.

If you do qualify, bank loans generally offer competitive fixed interest rates with predictable monthly payments, making them one of the lower-cost inventory financing options for established businesses. For brands with strong business credit and a clear picture of their inventory needs, a term loan can be one of the most straightforward financing solutions available.

Business line of credit

A business line of credit gives you revolving access to a set amount of capital that you can draw and repay as needed. It’s typically issued by a bank or credit union and carries a lower interest rate than a credit card.

A business line of credit works well for managing recurring inventory cycles, seasonal builds, and situations where you need flexibility rather than a lump sum. If you have an $80,000 business line of credit and use $50,000 of it, you have access to the remaining $30,000 until you repay what you borrowed. Once repaid, your full limit is available again.

One advantage of a business line of credit over a term loan is that you only pay interest on what you draw, not the full limit. That makes it a more efficient financing option for businesses with variable inventory needs from month to month. Qualification requirements are similar to bank loans, and your business credit history will be a key factor in the limit and rate you’re offered. Newer businesses may find them difficult to access until they’ve built a stronger credit track record.

Personal loans

Personal loans are sometimes used by small business owners and startup entrepreneurs who haven’t yet qualified for business credit. They don’t require collateral and are generally accessible even for borrowers with a limited credit history or less-than-perfect personal credit.

The tradeoff is cost. Compared to bank loans, a business line of credit, or purpose-built funding platforms like Kickfurther, personal loans tend to carry higher interest rates. They’re best treated as a short-term bridge rather than a long-term inventory financing solution, and mixing personal credit with business finances can create complications as your business grows. If you’re relying on personal credit to fund inventory needs, it’s worth treating that as a signal to shore up your business credit profile so you can access better options over time.

What is the least costly way to finance inventory?

In most cases, a bank loan, business line of credit, or a structured platform like purchase order financing will be the most cost-effective path. If your business supplies major retailers like Walmart and you’re working from a confirmed purchase order, PO financing through a program like Bridge is often the most efficient structure because it’s purpose-built for that cash gap. Paying cash remains the cheapest option when it’s available, but most growing small businesses need outside capital to purchase new inventory without disrupting operations.

Which type of financing is most appropriate to finance the purchase of inventories?

It depends on your business model and inventory needs. If you turn inventory quickly and need ongoing flexibility, a business line of credit may be your best fit. If you have a large confirmed order from a retail partner and need to fund production, purchase order financing is often the most direct solution. If you’re an emerging brand without the credit history to qualify for traditional lending, consignment-based funding through a platform like Kickfurther can align capital with how your inventory actually sells.

How does your credit history affect your financing options?

Most traditional inventory financing options, including bank loans and business lines of credit, rely heavily on your credit score and credit history during underwriting. Strong business credit typically unlocks lower rates, higher limits, and more flexible terms. Weak or limited credit history narrows your options and raises your cost of capital.

The good news is that not every inventory financing alternative is credit-driven. Purchase order financing, for example, is underwritten primarily against the purchase order itself and the retailer’s payment history rather than your personal credit or business credit score. Consignment-based models like Kickfurther evaluate the product and sales channel more than traditional creditworthiness. Building your business credit over time remains important, but it doesn’t have to be a blocker while you’re still early.

Grow your business with Kickfurther

Kickfurther has proven to be a flexible inventory financing platform for growing small businesses. Our customers often see lower costs than what’s available elsewhere and access payment terms that offer superior flexibility. Whether you’re exploring crowdfunding, PO financing, or a traditional credit product, understanding your financing options is the first step toward choosing the right one.

Content Types: Funding Solutions

Inventory Financing vs. Revenue-Based Financing: A Guide