Finding the Right Financing Partner for Your Consumer Brand

For consumer brands, financing is often the lifeblood of growth—but knowing when and how to leverage the right financing is critical. The wrong move can limit your potential, while the right one can unlock new opportunities. In this guide, we’ll explore the fundamentals of your financing options and how to prepare your brand to work with a partner like Lunr.

The Pitfalls of Short-Term Financing

One of the most common mistakes we see in the CPG world is brands piecing together multiple short-term financing solutions—working capital loans, crowdfunding campaigns, or revolving lines of credit. While these may provide immediate relief, they often create long-term challenges:

• Restrictive Terms: Many short-term loans come with aggressive repayment structures, forcing brands to use cash flow almost immediately to pay down principal and interest.
• Fragmented Financing: Brands that rely on multiple loans often find themselves juggling conflicting terms, leaving them with limited flexibility to pivot or scale.
• Missed Opportunities: Short-term solutions may not cover all your needs, such as building inventory ahead of a big-box retailer launch, leaving you unable to seize high-impact opportunities.

Here’s a common scenario: A brand is offered the chance to stock their products in a major retailer like Costco. But with a conflicting and crowded debt stack, financing the $700,000 for what should be a straightforward opportunity becomes unattainable. As a result, they miss out on a pivotal growth moment simply because their financing wasn’t aligned with their long-term needs.

How to Prep Your Brand for Financing with Lunr

Lunr provides non-dilutive financing that grows with your brand. Unlike traditional lenders, we focus specifically on helping emerging consumer brands make the transition into major retail channels, providing the capital needed for inventory while preserving founder equity. This means you can confidently pursue opportunities like nationwide retail launches without piecing together multiple funding sources.

If you’re gearing up to work with a financing partner like Lunr, preparation is key. Here’s a checklist to ensure your business is ready to maximize the benefits of a tailored financing solution:

1. Organize Your Financial Records

• As a CEO, you juggle many roles—driving the company vision, marketing, selling, and managing finances. Lunr frequently connects clients with fractional and CPG accounting groups to help lighten the load.
• Use an accounting platform like QuickBooks, Xero, or a similar tool to keep your books clean and organized.
• Ensure your financial statements, including profit and loss (P&L) and balance sheets, are up-to-date and accurate.

2. Build a Sales History

• Show consistent sales history to demonstrate your growth trajectory.
• Highlight any major retail partnerships or purchase orders that show big-box retail potential.

3. Clean Up Your Existing Debt

• If possible, consolidate or eliminate piecemeal loans that may create barriers to future financing.
• Review the terms of your current financing to avoid restrictive covenants or liens that could limit your options.

4. Track Your Inventory and Supply Chain Metrics

• Have clear visibility into your cost of goods sold (COGS), product margin, inventory turnover rates, and supply chain performance.
• Be prepared to share how you plan to scale production for larger retail opportunities.

5. Show Your Growth Plan

• Prepare a clear business plan that outlines your goals, key milestones, and market opportunities.
• Include specific details about your target retailers, product launches, and marketing strategies. 
• Highlight how you plan to sustain long-term success, such as through line extensions or strategies to ensure longevity beyond a single year on the shelf.

6. Get Comfortable with Transparency

• Be ready to share your sales pipeline, operations data, and financial plans with potential partners.
• Financing partners like Lunr work best when they have a full understanding of your business needs and growth opportunities.

Lunr works with brands that are ready to scale and have the operational foundation to succeed. By checking off these steps, you position your company not just to qualify for financing but to leverage it effectively for growth.

Savvy Financing Starts Early

One of the best moves a brand can make is engaging with a financing partner early—even before you think you’re ready. Talking to Lunr sooner rather than later means:

• Avoiding Common Mistakes: We’ve seen brands struggle to unwind piecemeal solutions. By working with us early, you can avoid these traps altogether.
• Planning Strategically: With a clear understanding of your financing options, you can make decisions that align with your long-term goals.
• Connecting You to Our Network: Whether it’s a manufacturing partner, retail broker, fractional CFO, or other financing partners, we’ll connect you with the resources you need to succeed.

When you’re ready to scale, Lunr ensures your financing is working as hard as you are—so you can focus on growth, not repayments.

If your brand is gearing up for a big opportunity or if you just want to ensure your financing aligns with your goals, let’s connect. Lunr is here to help you make the most of every stage in your growth journey.