In consumer goods, growth is often bottlenecked by one thing: cash flow. You can have the best product, the best team, and the best marketing strategy—and still be stuck because the dollars don’t hit when you need them to.

Enter Settle. A platform that has already delivered over $2.3 billion in financing to emerging brands since 2019, Settle is designed to support consumer product companies who are navigating real-world financial obstacles—like late retailer payments, inventory lead times, or the rising cost of digital advertising.

We spoke with Mel Caffagna, Capital Partnerships Manager at Settle and self-described “Financing Fairy Godmother,” to break down how founders can approach financing with confidence—and why timing, structure, and strategy matter more than ever.

The Financing Landscape, Decoded

For early-stage brands, the financing landscape can feel like alphabet soup: SBA, MCA, PO, DTC. Mel offers a simple framework. Imagine the financing ecosystem as a spectrum:

• On one end: Institutional banks. Slow to move, strict requirements (two years of tax returns, profitability), low cost of capital (prime to 12%). “Cheapest money, hardest to get,” Mel says.
  
  
• On the other: Merchant Cash Advance (MCA) platforms like Shopify Capital or Clearco. Fast-moving and accessible—but with effective APRs as high as 25%–40%. “It’s buy now, pay later—but for your business,” Mel says. And if you don’t ask the right questions, you may end up with a deal you can’t afford.
  
  
• In the middle: Settle. “We underwrite almost as fast as MCAs but with a lot more care and a lot more fairness,” says Mel. Their APRs range from 12%–24%, and they’re structured as revolving facilities that align with your cash flow.
  

Rather than a one-time lump sum loan, Settle allows founders to finance inventory, stretch payables, and access ongoing capital—without giving up equity or front-loading all the risk.

Why Profitability Still Matters

According to Mel, founders often underestimate the importance of margins when seeking financing. “Debt is a tool, but you have to be able to afford that tool,” she says. In her conversations with founders, she’s seen a consistent pattern: American entrepreneurs tend to be more risk-tolerant and focus on growth, while international founders often lead with profitability from day one. Settle encourages the latter. “Even if you're not fully profitable, you need to know your margins—down to the landed cost,” she says. That means factoring in not just COGS, but tariffs, shipping, customs, and trade spend. Mel recommends revisiting supplier partnerships early and often. “I just spoke with a founder who switched suppliers and cut costs by 50%. He went profitable overnight.”

The Real Cost of a Click

Settle isn’t just solving problems for operations teams. Mel spends a surprising amount of time talking with marketing leads, especially as Meta and Google ads have shifted from opportunity to liability for emerging brands. “If you’re running paid media, you need to know your CAC-to-LTV ratio cold,” says Mel. A $10 product with $5 margin doesn’t give you much room when a single click costs $8. Mel referenced brands that have spent over $150K in ad spend just to understand what messaging converts. “You can’t build your business on a dream CAC,” she says. “Founders need capital to test, but if you’re not testing at volume, you won’t get answers.”

When to Take Debt, When to Raise Equity

Settle doesn’t offer equity financing—but half of its customers are venture-backed. Why? Because even with millions raised, fast-growing brands still need capital to cover inventory and supply chain gaps. Mel encourages founders to avoid raising equity too early. “When you take a check, you’re selling part of your company. If you're not going to use that money immediately, you’ve diluted yourself for no reason,” she says. Her advice: start with debt. Use it to reach milestones. Then raise equity on better terms—when you’re growing from 1 to 10, not 0 to 1.

Seasonality, Retail, and Real Use Cases

Settle’s financing structure is especially useful for brands in seasonal categories (like apparel or sunscreen) or those scaling into national retail. Long lead times, late payments from distributors, and retail chargebacks can tank cash flow—even when the brand is technically “doing well.” “We’re like a buy now, pay later for your supply chain,” says Mel. Instead of tying up capital in inventory for months, founders can pace out payments and maintain runway for other expenses like payroll, rent, and marketing.

What Founders Get Wrong About Debt

Mel has heard it all. “Debt is scary. All lenders are sketchy. I don’t want to be personally liable.” And while she acknowledges those fears are valid, she challenges brands to think more strategically. “Debt used well is leverage,” she says. “Used poorly, it's a trap. But with the right partner and the right structure, it gives you options—and options are everything.” She advises founders to do their diligence on lenders. Ask for APRs across repayment scenarios. Look at the fine print. And talk to other brands who’ve used the platform. “Just like a bank underwrites you, you should vet them,” she says. “It’s a relationship. Think long term.”

Start With Audience, Then Add Capital

Mel’s final advice? Focus on community. “Some of our best-performing brands started with engagement. Influencers, creators, anyone with a real audience—they come in with built-in trust.” That audience doesn’t replace good margins or smart financial planning—but it gives founders an edge. And in a category where every click is expensive, trust is priceless.