How to Report Kickfurther Funding on Your Books

Posted on by Tom Treller

Understanding how to report Kickfurther’s funding on your financial statements is essential for maintaining accurate records and presenting a healthy balance sheet to current and potential lenders and investors.

Kickfurther has compiled insight from its customers and outside accountants to give you some insight as to how they manage Kickfurther funding.

Key Points 

  • Non-Debt Classification: Kickfurther’s funding is not classified as debt. This is important because it positively impacts your balance sheet, avoiding the negative connotations associated with traditional debt.
  • No Debt Obligations: Unlike traditional lenders who scrutinize your existing debt, Kickfurther funding does not fall under this category. This means you don’t need to disclose it as a debt obligation.

Accounting for Inventory

  • Inventory Purchases: Instead of purchasing inventory from a traditional vendor, you are acquiring it through Kickfurther.
  • Accounts Payable: When you receive funding from Kickfurther, it should likely be recorded in your accounts payable (AP), not as a loan.
  • Cost of Goods Sold (COGS): As you sell the inventory, you should likely include the fees paid to Kickfurther in your COGS.

Balance Sheet and Financial Health

  • Balance Sheet Metrics: Kickfurther funding does not affect your debt coverage ratios negatively. This means it helps maintain a healthier balance sheet, which is attractive to potential investors and lenders.
  • Presentation to the Outside World: Reflecting Kickfurther funding correctly showcases better balance sheet health and enhances access to additional capital.

Accounts Payable Management

  • Avoiding Aging AP: Ensure your accounts payable related to Kickfurther funding do not age. This is managed by maintaining long AP payment terms and paying Kickfurther promptly as you sell the inventory.
  • Regular Updates: Debit the AP for the balance owed to Kickfurther as you sell the product and ensure cash flow is managed effectively.

Reporting and Expenses

  • Pro Fees and G&A: Any pro subscription fees and platform costs (“Kickfurther Fees”) should be classified under General & Administrative (G&A) expenses, not COGS.
  • Auditor Considerations: Auditors will review your records to ensure you recognize the amounts owed. As long as these amounts are accurately reflected, you should be compliant.

Practical Steps for Accountants and CFOs

  1. Record Kickfurther Funding: Enter the received funding into your accounts payable.
  2. Manage Inventory Costs: Include Kickfurther Fees in your COGS as you sell the inventory.
  3. Update AP Regularly: Ensure that your AP does not age by setting appropriate payment terms and regularly debiting AP as inventory is sold and payments are made.
  4. Classify Fees Correctly: Classify Kickfurther Fees under G&A expenses.
  5. Maintain Balance Sheet Health: By accurately reflecting Kickfurther funding, maintain strong balance sheet health metrics.

As a business owner, it’s crucial to maintain a healthy balance sheet while ensuring accurate reporting. Kickfurther’s non-debt classification for funding is a game-changer for CPG brands. It allows you to acquire inventory without adding debt, which positively impacts your financial health.  By recording Kickfurther funding under accounts payable rather than loans, you avoid debt burdens and keep your balance sheet attractive to potential investors. 

 

Disclaimer: This document was created using insight from Kickfurther customers and outside accountants. Nothing in this document shall be construed as Kickfurther providing any tax or accounting advice, and you should always consult your tax advisor and accountants prior to making any tax or accounting decisions.

How to Estimate Product Manufacturing Costs: A 3-Step Strategy

Posted on by Tom Treller

When building a physical product business, your margins matter. One of the most effective ways to boost profitability is by lowering production costs without touching your pricing.

Let’s break down why cost optimization matters using a simple product margin model.

Product Margin Breakdown: Raise Prices vs. Reduce Costs

Scenario Unit Cost Wholesale Price Margin Retail Price Margin
Baseline $1.00 $2.00 50% $4.00 75%
Raise Prices 10% $1.10 $2.20 54.5% $4.40 77.3%
Lower Costs 10% $0.90 $2.00 55% $4.00 77.5%

While both strategies improve margins, reducing production costs does it without risking customer pushback, making it a safer, scalable lever.

Step 1: Find Comparable Product Prices Online

To ballpark your product manufacturing costs, start by researching similar products on sourcing and marketplace platforms:

  • Alibaba.com: Factory-level pricing and global suppliers.
  • 1688.com: Chinese domestic prices (use Google Translate).
  • Temu.com: Great for seeing ultra-low-cost consumer goods.
  • Amazon.com: Insight into final consumer pricing.

Tip: If your product is custom, find the closest category match (e.g., if you’re creating a specialty water bottle, look at insulated bottles or gym bottles).

Step 2: Adjust for Customization and Quality

Once you’ve gathered 3–5 sample prices from each site, adjust them for factors that affect cost, such as materials, design, or packaging.

Custom Feature Cost Adjustment
Premium materials +10–25%
Custom tooling or molds +20–40%
Branded packaging +10–20%
Low order quantity (<500 units) +15–30%

After adjustments, average the estimates to arrive at a realistic production cost range.

Step 3: Validate With Modern Sourcing Tools

For a more accurate picture of actual factory pricing, use sourcing intelligence platforms:

  • ImportYeti – See your competitors’ manufacturers via shipping records.
  • JungleScout / Helium 10 – Analyze top-selling Amazon products and likely sourcing strategies.
  • Sourcify – Connect directly with trusted manufacturers worldwide.

These tools offer real-world data to cross-check your estimates and discover vetted suppliers you can contact directly.

How to Negotiate Lower Product Manufacturing Costs

Armed with data, you’re ready to negotiate more effectively:

“We’re seeing similar products quoted at $X on 1688 and Alibaba. Can you explain what makes your pricing higher?” This kind of informed question signals professionalism. It may result in:

  • A better quote
  • Access to different production tiers
  • New supplier introductions

Even if you don’t secure a price drop, you’ll walk away with valuable insight into your supply chain options.

Plan for Long-Term Cost Reductions

Early production runs often cost more due to:

  • Small MOQs
  • Custom tooling
  • Limited supplier leverage

But understanding what’s possible at scale helps you set target COGS (Cost of Goods Sold) for the future. Use your initial estimates as a benchmark to negotiate toward as you grow.

Final Takeaway: Smarter Sourcing = Higher Margins

By using modern tools and market-based research, you can:

  • Set realistic production cost expectations
  • Avoid overpaying for manufacturing
  • Increase your gross margins without alienating customers

Whether you’re launching your first product or scaling a line, understanding your true production cost potential is key to growing a sustainable, profitable brand.

Have you negotiated a great deal with your manufacturer or used a sourcing tool that saved you money? Drop us a note and we might feature your story!

 

 

 

Building and Maintaining Strong Supplier Relationships

Posted on by Kaylyn Perry

Strong supplier relationships aren’t just a box to check, they’re a competitive advantage. In today’s volatile and fast-moving global economy, collaboration with suppliers drives resilience, product quality, and innovation. 

Platforms like Kickfurther can help fund your inventory and scale your operations, but it’s your relationships with suppliers that form the backbone of long-term success. Below are five strategies to build and maintain strong supplier relationships in 2025.

1. Focus on Core Suppliers

Managing thousands of suppliers can dilute your focus and drain resources. Many businesses now follow the 80/20 rule: concentrating 80% of spend on the top 20% of suppliers. This allows for deeper collaboration, better pricing, and more predictable quality.

That said, today’s geopolitical landscape demands flexibility. Between shipping bottlenecks, sanctions, and regional unrest, diversification is no longer optional, it’s strategic.

In 2025, country-level diversification is just as critical as vendor diversification. Over 60% of U.S. companies are shifting part of their supply chains out of China, favoring countries like Vietnam, Mexico, and India, per the U.S. Chamber of Commerce. With ongoing tariff rounds and rising scrutiny around ESG compliance, “China-plus-one” and nearshoring strategies continue to gain traction.

2. Understand Their Operations

Deep knowledge of your suppliers’ operations shows respect and lays the groundwork for true collaboration. You’ll better understand their constraints, capacity, and quality systems, allowing you to plan smarter and react faster.

Companies like Toyota lead in this area by using AI-powered supply chain visibility tools. These platforms use predictive analytics to flag delays, assess supplier risk, and generate real-time performance dashboards. Some even recommend alternative suppliers when disruptions are detected.

To keep up, consider platforms like NetSuite, Odoo, Katana, or Cin7, many of which now offer AI-driven alerts, supplier scoring, and demand forecasting. These tools help you stay proactive, not just responsive.

3. Address Issues Proactively

Even the best suppliers will sometimes falter. When issues arise, whether it’s late deliveries, damaged goods, or missed specs, the goal isn’t blame, it’s resolution.

Approach problems with transparency and empathy. Frame challenges as joint issues, not accusations. Keeping communication forward-looking helps preserve trust and often leads to process improvements on both sides.

Tip: Many leading firms now use automated dispute resolution systems or shared ticketing platforms to manage supplier issues with transparency and speed.

4. Give Feedback Constructively and Often

Feedback helps suppliers improve and it signals that you’re committed to the relationship. Brands like Honda send monthly supplier scorecards covering delivery, quality, and responsiveness. This kind of regular feedback helps identify problems early and reinforces expectations.

In 2025, AI can auto-generate these reports from procurement and logistics data, freeing up teams to focus on strategy. Quarterly reviews or collaborative SWOT sessions can also reveal shared opportunities for growth and efficiency.

5. Treat Suppliers as Strategic Partners

The most resilient supply chains are built on partnership, not transactions. Suppliers who feel respected and included are more likely to invest in your success, be it ramping up production, sharing market insights, or flagging upstream risks.

Top consumer brands treat supplier engagement like customer success: they prioritize communication, co-innovation, and aligned incentives. This mindset drives better performance and helps brands meet evolving demands for sustainability, traceability, and speed.

Final Thoughts

In a world of economic uncertainty and rising consumer expectations, your supplier relationships are a key source of stability, efficiency, and innovation. Whether you’re launching your first product or scaling a global supply chain, building trust with suppliers is a long-term investment that pays compounding dividends.

And when you’re ready to fund your next inventory purchase, Kickfurther is here to support your growth, so you can deliver with confidence, backed by a supply chain you trust.

 

How a Financial Model Can Help You Respond to Tariffs

Posted on by Kaylyn Perry

Feeling the squeeze from new import duties? You’re not alone. Many businesses are grappling with the challenge of figuring out how to fit tariffs into their financial forecasts. If you’re staring at your spreadsheet wondering exactly how to add tariffs into a financial model, this should be a helpful resource. Follow along to explore the impact to your costs, profitability, and overall financial performance.

Tariffs can seem like an unexpected hurdle, especially if your business relies on international suppliers and global supply chains. One day your costs are predictable, and the next, a new policy or regulation throws a wrench into them. 

With an orderly approach, you can account for these additional costs to make smarter decisions and reduce uncertainty. The good news is that this process will actually strengthen your financial model, so let’s go ahead and get started.

Table of Contents

  • Understanding Tariffs and Their Impact
  • Before You Touch Your Financial Model: Prep Work
  • How to Incorporate Tariffs into a Financial Model: Step-by-Step
  • Beyond the Spreadsheet: Strategic Responses to Tariffs
  • Conclusion

Understanding Tariffs and Their Impact

Before you start editing your spreadsheets, it’s important to grasp what tariffs really are. Knowing these basics helps you see how they ripple through your financial statements.

What Exactly Are Tariffs?

Tariffs are essentially taxes imposed on imported goods. Governments utilize them for different reasons, from protecting domestic industries from foreign competition to simply generating new revenue. Sometimes, they’re used as a lever in trade policies and negotiations. There are several types of tariffs you might encounter.

Ad valorem tariffs are calculated as a percentage of the imported goods’ value. Specific tariffs are a fixed fee per unit, like per kilogram or per container. Compound tariffs combine both ad valorem and specific duties. 

You can usually find detailed information on specific tariff rate structures through government resources like the U.S. International Trade Commission’s Harmonized Tariff Schedule, which details how tariffs are applied to lots of different things.

Why Do Tariffs Suddenly Matter So Much?

Tariffs aren’t a new consideration for companies who move physical products internationally. They frequently crop up in the news when the geopolitical landscape shifts and trade relationships change between countries. They can change rapidly, so it’s important to be agile if they’re a major concern for you.

This volatility makes proactive financial planning and analysis (FP&A) even more critical. Today’s supply chains are incredibly global and interconnected, and long supply chains are vulnerable to frequent changes. 

How Tariffs Mess With Your Bottom Line

The most direct impact of tariffs is an increase in your Cost of Goods Sold (COGS). If you’re importing raw materials or finished products, a new tariff can add directly to those costs. So, you need to determine whether you can or should absorb the higher cost and accept the hit to your gross margin and overall profitability.

Other options include passing the new cost increase on to your customers through your pricing, which will in turn impact customer demand. Obviously, these aren’t simple questions, and the answers depend largely on your specific market, customer base, and the price elasticity of your products.

Understanding complex dynamics like these is a challenge, but it’s important for an effective finance strategy. Increased costs will definitely show up in your financial reporting, so it’s great to take a proactive approach and control what you can.

Before You Touch Your Financial Model: Prep Work

Randomly changing the numbers in your model without laying the groundwork can lead to inaccuracies, and a little preparation will go a long way here. 

Identify Affected Products and Components

First, pinpoint exactly which products and inputs are subject to new tariffs. Get specific and list them out. 

If you’re in manufacturing, this might mean a complete review of your entire bill of materials. If you’re a reseller, you just need to verify the origin and classification of what you’re importing. 

It’s easy to overlook smaller components that could also face new duties, so a comprehensive check is a good idea. This diligence will pay off through quick, surgical updates to your model.

Research Current and Potential Tariff Rates

Tariff rates aren’t static; they can change due to legislation or policy changes from multiple governments. They can be delayed, suspended, or modified, and some eventually expire. You need to find the current tariff rate for your specific goods and their countries of origin.

You should also try to understand potential future changes. Stay up-to-date with industry news, trade publications, and insight reports. In the U.S., the U.S. Customs and Border Protection can help you understand your regulations and risks.

Understand Your Supply Chain Vulnerabilities

Where do your critical supplies originate? If you rely heavily on a single country or region, you’re less exposed, but a change can deeply impact your costs. If you have an extensive and complex global supply chain, map it out thoroughly.

This exercise will help get you thinking about diversification and alternative options if they’re needed. Understanding your vulnerabilities puts you in a position to mitigate the impact well when tariffs happen.

Talk to Your Suppliers

Your suppliers are the front line with you when tariffs are imposed. Keep the lines of communication open and understand how they are responding. Will they absorb some share of the cost, or will they pass it all on to you through price increases?

Getting this information directly and early provides a better vantage point than waiting to see how the costs flow through on your financial statements. Some suppliers might help arrange alternative sourcing strategies that are beneficial to all parties, especially if you have long-term contracts. Keeping the dialogue open will help you keep an accurate forecast for accounts payable.

How to Incorporate Tariffs into a Financial Model: Step-by-Step

When your research is finished, it’s time to start making changes. This section focuses on how to build tariffs into your financial model. We’ll break it down into manageable steps to help.

Step 1: Adjust Cost of Goods Sold (COGS)

This is typically where tariffs have the most direct impact, and there are a couple of ways to show this in your financial model.

If you’re working in a spreadsheet, you might need to directly increase the unit cost of each affected material or product. Back up your model before you start, and keep clear records about the changes you make and the time periods they cover in your model.

Another approach is to add a new line item specifically for tariffs paid within your COGS formula. This tactic can provide better visibility into the total impact of tariffs, but it can also cloud your understanding of unit economics.

If you’re using a premium financial model software like Forecastr, you can apply the tariff as an adjustment to your unit costs and then report it either way, or both ways.

Whichever method you pick, ensure that it’s clear, consistently applied, and supported by sound controls to verify that your actual costs match your projected costs.

Step 2: Model the Impact on Sales Price and Demand

If COGS goes up, you now face a strategic decision about your pricing. You can absorb the increased costs, lowering your gross profit margin. Or you can pass the increase along through your pricing to maintain your margin. So, you’ll need to gauge price elasticity carefully.

How sensitive are your customers to price changes? A significant price hike might lead to a drop in customer demand and sales volume. This is where scenario analysis becomes an invaluable tool for you. Model a scenario where you absorb the cost, another where you pass it all on, and perhaps a third where you share the burden with your customers. Make an educated guess about the impact of each option on demand and volume.

This will show you the potential effects on revenue, gross profit, and net profit, helping you make an informed decision about which alternative presents the smallest downside for your operation. You will still need to measure your metrics carefully and adjust your assumptions over time to reflect reality, but you’ll be able to make the most informed decision about how to manage your pricing strategy and control your position in the market.

Step 3: Forecast Changes in Inventory

Tariffs can also significantly affect your inventory strategy and working capital requirements. If you know tariffs are coming, you might decide to stockpile larger quantities of inventory. This can help you dodge some costs, but it can also tie up your short-term cash and increase your inventory holding costs, such as storage, insurance, and the risk of obsolescence.

Use your financial model to anticipate changes like these. If you pre-buy, inventory will spike on your balance sheet, and your cash outflow will be front-loaded. Alternatively, if tariffs make something prohibitively expensive, you might choose to reduce stock, which would free up cash but negatively impact product availability.

Step 4: Revisit Your Gross and Net Profit Margins

Ultimately, tariffs almost always put pressure on your profit margins. After adjusting COGS and potentially sales revenue, you should recalculate your gross margin (Revenue – COGS / Revenue). Observe how much it changes due to the tariffs. This revised gross profit will then flow through to your income statement, affecting your operating profit and net profit margins.

Understanding this squeeze is fundamental to grasping the true cost of tariffs to your business’s overall financial performance. If profits fall significantly, that can influence investment decisions, expansion plans, and everything from your marketing budget to your hiring plan. 

Without this step, you’re making decisions without a complete picture of the implications.

Step 5: Cash Flow Implications

Don’t overlook cash flows. Tariffs are usually paid when goods clear customs as a direct cash outflow. If you are pre-buying inventory, that can represent a substantial upfront cost. And if you are absorbing those costs, your profit margins will decrease, leading to less cash generated from operations over time.

Your cash flow forecast should reflect the timing and amount of these tariff-related cash movements. Managing working capital requirements becomes even more critical as changes in inventory and accounts payable terms can strain liquidity. Accurate cash flow forecasting is vital for operational stability.

Beyond the Spreadsheet: Strategic Responses to Tariffs

Working tariffs into your financial model is an important first step. However, it’s only part of the solution. You should also think strategically about how your business will adapt to this new cost environment, considering how the changes impact your long-term resilience.

Your financial model can help you evaluate different strategies and understand the best way to mitigate the impact of increased costs.

Here are some common strategies you might consider:

Absorb Tariff Costs
Business absorbs the tariff-related costs, reducing margins.

If tariffs from a specific country make your products too expensive, it might be time to look for alternative suppliers in other countries. This is known as supply chain diversification, a key strategy for managing global supply chains. It’s not always a quick or easy process, but it can be a long-term solution to reduce tariff risk and additional costs.

Pros: Maintains customer price points; potentially preserves sales volume.
 Cons: Reduces gross margin; lower profitability; profits fall.
 Key Financial Model Inputs: Higher COGS; unchanged ARPU

Pass Costs to Customers
Implement price increases to cover tariff costs.

Pros: Preserves gross margin.
 Cons: Risk of lower customer demand; loss of competitiveness.
 Key Financial Model Inputs: Higher COGS; higher revenue per unit.

Alternative Sourcing
Find suppliers in non-tariff or lower-tariff countries.

Pros: Reduces direct tariff-related costs; diversifies supply chains.
 Cons: Time-consuming; potential quality issues; new logistics costs.
 Key Financial Model Inputs: New supplier costs; shipping rates; lead times.

Product Re-engineering
Modify product to change tariff classification or reduce dutiable content.

Pros: Potential for lower tariff rate; long-term cost savings.
Cons: R&D costs; implementation time; may not be feasible for all products.
 Key Financial Model Inputs: R&D expenses; new component costs; updated COGS.

Negotiate with Suppliers
Request suppliers to share a portion of the tariff burden.

Pros: Can mitigate some cost increases without direct customer impact.
 Cons: Suppliers may refuse or increase prices later; relationship strain.
 Key Financial Model Inputs: Adjusted COGS based on negotiation outcome.

Strategic Stockpiling
Buy inventory before tariffs are imposed or increased.

Pros: Avoids immediate higher costs on stocked goods sold.
 Cons: Increased working capital requirements; storage costs; risk of obsolescence.
 Key Financial Model Inputs: Inventory levels; holding costs; cash outflow timing.

Engaging with Trade Policy

While it might seem out of reach for very early or small businesses, staying informed about trade policy developments is always a good idea. Sometimes, there are processes for requesting exemptions or exclusions from certain tariffs. Industry associations often lobby on behalf of their members and can also provide valuable insights.

The Office of the U.S. Trade Representative (USTR) publishes announcements and newsletters about tariff actions and exclusion processes. Staying aware of these can also help you manage your compliance risk.

Communicating with Stakeholders

Whatever happens, and however you decide to respond to tariffs, always maintain transparency with your key stakeholders. If tariffs are impacting your business and financial performance, your stakeholders should be the first to know. 

Explain the situation to investors, lenders, and even your customers (especially if price increases are necessary). Show them you have a plan and you are addressing changes proactively.

Demonstrate that you have worked through the financial implications and are exploring strategic responses. Clear communication builds trust, especially during periods of uncertainty. This transparency is important for everyone involved and might even impact individuals’ decisions around personal wealth management. Keep those relationships on good terms.

Navigating Uncertainty Around Tariffs

Figuring out how to respond to tariffs in a financial model is much more than a simple numbers exercise. Do it right, and you can build a resilient business capable of adapting to the shifting winds of global trade policies.

By carefully analyzing the impact on your costs, pricing strategies, cash flows, and margins, and by exploring different strategic responses, you’ll put your company in the best possible position.

A financial model is an indispensable tool to understand these new realities and how they affect your operations. It can help you manage your working capital requirements and guide your company forward through uncertainty. When you understand your options, you can make informed decisions with confidence.

This is a guest post from our partner Forecastr. Forecastr helps founders build world-class financial models and achieve stress-free finance. Get in touch with us to add a finance expert to your team.

 

Author: Logan Burchett, Co-Founder and COO of Forecastr

Kickfurther Announces Appointment of Gregg Gordon as CEO; Founder Sean De Clercq Transitions to Chair of the Board

Posted on by Kaylyn Perry

BUFFALO, NY, MAY 13, 2025 — Kickfurther, the leading inventory funding platform for consumer packaged goods (CPG) companies, announced today the appointment of Gregg Gordon as its new CEO, effective immediately, to accelerate the company’s next stage of growth. Kickfurther founder, board member, and former CEO, Sean De Clercq, will transition into the role of Chair of the Board of Directors.

“Having Gregg in the CEO role allows me to spend more time on strategy and focus on how Kickfurther can innovate and evolve in our ever-changing market,” said Sean De Clercq, Kickfurther founder. “As the Chair, I will remain engaged and continue to speak to colleagues, customers, and other stakeholders about how Kickfurther is helping CPG companies and funders to grow and succeed.”

Gordon was announced as Kickfurther’s President and CFO in January 2025, after having consulted for the company. He brings a wealth of expertise from his tenure at SSRN, a transformative academic publishing platform that he co-founded and later led through its acquisition by Elsevier in 2017. Prior to SSRN, he held leadership roles at KPMG and participated in various entrepreneurial ventures in technology and healthcare.

“Kickfurther recently announced its 10-year anniversary and surpassed $300 million in inventory funding, so this is an exciting time to lead us into the future,” said Gordon. “The leadership team is strong, the vision is clear, and the momentum is building as we continue to capitalize on being the best cash flow alternative for growing CPG companies.” 

“Gregg’s proven track record in scaling businesses and driving operational excellence brings invaluable insights to our team, the businesses we work with, and our marketplace,” said David Bovenzi, CIO of Grand Oaks Capital and member of the Kickfurther board. “As Kickfurther’s largest investor, Grand Oaks’ belief in this team and this company has never been stronger. We’re fully behind this transition and excited for the next chapter.”

###

Media Contact:

Tom Reller

Treller@kickfurther.com

How Tariffs Disrupt the Supply Chain (and What CPG Brands Can Do About It)

Posted on by Kaylyn Perry

If you’re a CPG founder, you’re not just managing a brand, you’re managing a chain reaction. From sourcing raw materials to shipping finished goods, your supply chain is the lifeline of your business.

Tariffs hit harder than most founders expect. They don’t just raise costs at the port. They apply pressure across your entire supply chain. From sourcing to shipping to shelving, every link gets tighter and your margins feel it fast.

So here’s what you should know.

Sourcing: Tariffs Start at the Root

When tariffs go up, your raw materials cost more before your product even exists. Whether it’s packaging from China, ingredients from India, or components from Mexico, tariffs quietly raise the baseline cost of doing business.

Founder insight: Switching suppliers or sourcing closer to home might help, but those moves usually mean bigger minimums and longer lead times. That means more cash tied up earlier in the process.

Manufacturing: Margins Get Squeezed

Tariffs can add friction whether you’re manufacturing domestically or abroad. Raw material cost hikes shrink your margin. If you’re importing finished goods, tariffs might hit twice, once on inputs, again on the final product.

Smart move: You may need to negotiate better terms, increase order sizes for better unit economics, or shift production to tariff-free zones. But those moves often require more working capital upfront which is where flexible funding makes a difference.

Shipping & Freight: The Multiplier Effect

You’re not just paying more for your goods—you’re paying more to move them. Higher declared value = higher freight insurance, duties, and sometimes even freight costs. Tariffs are the match; shipping delays and surcharges are the fuel.

Founder takeaway: Freight cost spikes, on top of tariffs, can throw your forecasts out of whack. Lock in rates early where possible and consider building freight buffers into your funding model.

Warehousing: Higher Stakes, More Risk

If your inventory now costs more to produce, store, and insure, sitting on excess stock becomes expensive fast. And if a retailer’s PO shifts or sales slow down? That’s your cash flow stuck on a shelf.

Solution: Align your inventory financing with your sales cycle to reduce risk. With Kickfurther, you don’t pay until your product sells, giving you breathing room even when macro forces make timing unpredictable.

Distribution & Retail: Pass It On Or Don’t

Once tariffs hike your COGS, you’re stuck with two choices: raise prices or take the margin hit. Neither one is great. Price hikes could slow sell-through. Absorbing costs can stall your growth engine.

Better approach: Plan your tariff strategy before you’re forced to choose. Forecast scenarios with and without tariff impact and build in agility with a funding partner who understands your real costs and timelines.

Tariffs Don’t Have to Kill Growth

You built your brand to scale. Don’t let macroeconomic noise put you on defense. Kickfurther helps CPG founders:

  • Fund up to 100% of inventory costs upfront

  • Repay after sales, not before

  • Scale without taking on debt or giving up equity

We know cash flow is king and that’s exactly why we built Kickfurther. So you can stop stressing over tariff hikes and start focusing on what actually drives growth: product, marketing, team, and customer love.

Ready to Take Control?

Tariffs are unpredictable, but they don’t have to derail your growth. The most resilient CPG brands plan ahead, fund smart, and stay flexible.

Let’s keep your supply chain moving and your margins protected.

→ Ready to get funded? Apply here