The inventory is sitting there. The PO is in hand. The cash isn't.
You've validated the product, negotiated the supplier, and done the landed-cost math. The only missing input is the wire.
Launches are won before the first unit sells
A good launch is a supply-chain event, not a marketing event. You need enough depth to survive the first review velocity spike, enough buffer to reorder before the honeymoon ranking fades, and enough left over to feed ads. Underfund the launch and you stock out at the exact moment the algorithm decides whether you matter.
Suppliers want 30% down and the balance at shipment. Freight wants payment before the container moves. Amazon wants weeks of lead time into FBA. Add it up and you're cash-out for 60–120 days before the first payout lands — on top of everything your existing catalog already ties up.
Funding a launch from operating cash means your best sellers subsidize your new bet and both get squeezed. The alternative: capital structured around the launch itself, secured by the PO and the inventory it becomes.
The structures that fit this moment
Honest pros and cons — none of these is right for everyone.Purchase order financing
If you're launching with a confirmed order from a retailer or distributor, the lender pays your supplier directly and your buyer's credit does the qualifying.
- Qualification rides on your buyer's credit, not just yours
- Scales with the order — a $2M PO can be financed even if you've never borrowed
- No dilution, and it disappears when the order is done
- –Only works with confirmed POs from creditworthy buyers
- –Fees compress your margin — thin-margin orders may not pencil
- –The lender is in your supplier relationship; expect verification calls
Inventory financing
For DTC and marketplace launches: capital advanced against the stock you're producing, repaid as it sells through.
- Sized to the order, not to your credit limit
- Keeps working capital free for ads and payroll
- Lenders in this space understand lead times and sell-through curves
- –The lender will scrutinize your velocity data — slow movers won't qualify
- –Usually product-category dependent; perishables and fads are harder
- –Adds process: inspections, warehouse agreements, sometimes lien filings
Term loan
When the launch is one piece of a bigger expansion, a fixed-term note keeps the whole plan on one predictable schedule.
- Predictable payment you can put in the budget and forget
- Longer terms fit investments that pay back over years, not months
- Often the lowest headline cost of capital on this list
- –Slowest underwriting — expect full financials and sometimes a personal guarantee
- –Fixed payments don't care that your sales are seasonal
- –Prepayment penalties exist; read that clause before signing
What lenders will actually look at
No mystery underwriting. This is the review, in the open — so you know where you stand before anyone else does.
The questions sellers actually ask
Can I get funded for my very first product?+
Honestly: it's hard. Most lenders in our network want 6–12 months of selling history somewhere. If you're pre-revenue, we'll say so upfront rather than shop a deal that won't land — and point you at what to build first.
The supplier needs a deposit next week. Is that realistic?+
Inventory and revenue-based structures can move in days if your data is clean. PO financing takes 1–2 weeks because the lender verifies the order. Tell us the real deadline and we'll match against lenders who can hit it.
What happens if the launch underperforms?+
You still owe the money — no structure changes that. What changes is how it hurts: revenue-based payments shrink with sales, inventory lenders work restock and markdown angles with you. We'll model the slow-launch case with you before you commit.
Do lenders care that it's a new SKU with no sales history?+
They underwrite the business, not just the SKU. Strong catalog performance, validated demand signals, and a credible supplier all substitute for the history the new product doesn't have yet.
See which lenders fit this exact situation.
Five minutes to a matched shortlist. No credit pull, no obligation.