Asset-Based Loans - Fuel For Growth

In CPG, the game isn’t just about great products or strong retail wins. A critical area is managing the cash flow gap between making a product and finally getting paid for it.

If you can handle the due diligence, turning to Asset-Based Loans (ABL's) as a proactive cash flow strategy can be a good option.

Inventory ties up cash but an ABL gives you a means to free that cash. You have to buy ingredients, packaging, and pay co-manufacturers before revenue hits. An ABL turns that inventory into borrowing power, putting cash back into the system when you need it most.

Retailer payment terms slow cash to a crawl. It's not uncommon for Net 30 to become Net 45 - Net 60 - Net “whenever AP gets to it.” ABL's convert outstanding receivables into immediate working capital, smoothing out the long waits that drain momentum.

Growth makes cash flow tighter before unclogging the cycle. Larger purchase orders mean more production, more logistics, more spend and greater time before collections catch up.

An ABL can expand with your borrowing base, giving you cash flow capacity when you need it. Cash flow shouldn’t be a guessing game. ABL's provide reliable access to capital tied directly to your real assets. There is no waiting for equity rounds or rigid term loans that don’t flex with your business.

The fastest-growing CPG brands aren’t the ones with the most demand - they are the ones with the strongest cash flow strategy. A well-designed ABL turns existing assets into a steady, dependable engine for growth, stability, and opportunity.