Is revenue-based financing or inventory finance better for a consumer brand?

They solve different problems. RBF is fast and flexible for marketing and short-term working capital; inventory finance is usually cheaper for funding stock because it is secured. Many brands run both. The right mix is subject to diligence.

What metrics do lenders look at for consumer brands?

Contribution margin after returns, CAC payback, inventory turns, stock cover, and channel concentration. Heavy dependence on a single platform is the most common pushback.

Debt financing for

E-commerce & Consumer Brands

Consumer businesses tie up cash in stock, and that stock, along with receivables, is financeable collateral. Inventory facilities, asset-backed lines, and revenue-based financing let brands fund purchasing ahead of peak season far more cheaply than equity.

Lenders underwrite the cash conversion cycle: contribution margin after returns, how fast stock turns, and how concentrated the channel mix is. Brands with repeat-purchase behaviour and diversified channels get the best terms.

See what you can raise Talk to a banker

Best-fit products

The structures that work in E-commerce & Consumer Brands

Asset-backed financing

Asset-Backed Lending

Revolving lines against receivables, inventory, MRR, or equipment.

$5M-$200M

Cashflow financing

Revenue-Based Financing

Capital repaid as a share of revenue: fast, flexible, fully non-dilutive.

$2M-$20M

Cashflow financing

Growth Debt

Larger, cheaper debt for scale-ups with established revenues.

$10M-$100M

Cashflow financing

Revolving Credit Facility

A true revolver for profitable businesses: draw at will, repay at will.

$5M-$100M

What lenders like

Why the sector attracts debt capital

Inventory and receivables are financeable collateral
Repeat-purchase behaviour gives revenue predictability
Debt funds seasonal stock builds without permanent dilution
Facilities flex with the borrowing base as the business scales

What investors will ask

The diligence questions to be ready for

Contribution margin after returns, and CAC payback period
Seasonality, stock cover, and obsolescence / markdown risk
Platform dependence: what share of revenue runs through Amazon or a single channel?
Supplier concentration and the terms of the supply chain

Products, criteria, and themes shown are indicative, not exhaustive, and subject to further diligence on the company and its assets. Every business is assessed on its own merits.

Track record

Deals we've advised in the sector

£30M

Growth Debt

Consumer Hardware