Net 30, May 2026: The lending market shifted. Here’s what it means for your brand

I’m Mike Gelb. I run Community Growth at Bridge. We handle the full financing process for consumer brands so you get real options, built-in leverage, and the right deal. Without it becoming a second job.You can book a call with me here to learn more

This month, we’re sharing our Q1 2026 capital markets briefing for emerging CPG businesses.

TLDR: CPG Q1 Lending Market Update

1. From the desk: The lending market tightened from both ends: Clean books and organized data now translate to 150–200 bps cheaper pricing (we’re happy to make introductions to accountants who understand CPG if you’re looking to clean your books)
2. Banks have retreated from CPG: For food & bev and beauty brands especially, specialty finance is now the default working-capital lender, not a backup. They close faster and require no minimum EBITDA
3. What’s actually working in CPG deals right now: Lender-ready brands are able to get deals done and PO financing has become an unlock

Key observations

1. From the desk: The market tightened. Prepared borrowers win anyway.

The Fed held at 3.50–3.75% through March, and the next move could be a hike in 2027 – tariff-driven inflation is the ceiling on rate relief. The real pricing lever is spread, not the curve. Moving from SOFR + 700 to SOFR + 500 on a $10M facility saves $200K a year. That gap is earned through preparation, not negotiation.

AKA: Don’t count on rates dropping to save you money.

The lending market tightened on both ends, pushing lender scrutiny back to 2009 levels.

Two things happened at once:

• High-profile defaults, including a $2.3B fabricated receivables fraud, drove lender scrutiny back to 2009 levels.
• Roughly 20% of middle market borrowers are now below 1× interest coverage, meaning the underlying borrower pool is genuinely weaker. Lenders aren’t being paranoid. They’re responding to real data.

Borrowers are now competing for lender attention, not the other way around.

There’s $146B in U.S. direct lending dry powder; capital is available. But lenders are rationing their diligence time to borrowers who are easy to underwrite. Clean AR, clear UCC filings, and organized data are how a brand signals “I won’t cost you time.” The gap between lender-ready and lender-unready borrowers on a $10M facility is 150–200 bps, that’s $200K a year in avoidable cost.

2. Banks have retreated from CPG in the growth stage

The 2026 capital stack, by stage for CPG.

Where you sit determines what’s available and what it costs. Here’s how we’re mapping it right now.

Banks have largely exited sub-$25M deals, and the specialty lenders who filled that gap have started moving upmarket. Brands in this window need to know their options and move faster than they used to.

How the lending landscape for CPG has shifted from 2021 to today.

Specialty finance is now the default working-capital lender for growth stage / mid-market CPG. It’s a category that’s grown at roughly 15% CAGR from 2021 to 2026 and now sits at ~$180B AUM. Specialty finance is higher cost, but the speed and flexibility more than compensate when you’re trying to move on a time-sensitive order.

3. What’s actually working in CPG deals right now.

Lender-ready brands are outcompeting on terms.

Brands with clean A/R, diversified retail exposure, and documented PO history are accessing capital 150–200 bps cheaper than peers. A better-for-you beverage brand with $12M in revenue, four retail customers, and clean AR aging closed a combined PO + AR facility in 14 days at SOFR + 5.5%. Comparable brands with concentrated AR were quoted SOFR + 7.5% or more.

Lender-readiness is now a competitive moat. It’s not just about getting the deal done, it’s about what the deal costs.

PO financing is unlocking first retail moments.

A brand wins its first major retailer PO but can’t fund production. PO financing makes the moment real. A personal care brand with $6M in DTC revenue landed its first Walmart PO for $800K. No bank relationship, no AR facility. The PO was funded in 10 days, and that deal became the anchor for a $3M ABL facility the following quarter.

The first retail win is often the hardest to fund. It’s also the one that changes the business.

Recent deal closed

Landing a Walmart purchase order takes years.

Funding the inventory load-in before your first invoice is paid? That’s where most new suppliers stall.

We just closed $800K in two weeks for a new Walmart supplier, capital to support their inventory load-in, in time to hit their ship window.

Finance the order, not the business.

That’s how Bridge moves new suppliers from PO to shelf.

Tools you can use

(free, no login, actually useful)

Whether you’re a founder, a broker, or a fractional CFO, these are the three we built specifically for CPG:

1. Loan Payment Calculator – estimate monthly payments and total interest before you call anyone. → quickloan-calc.vercel.app/widget
2. AR Financing & Better CPG – analyze your revenue projections against what’s actually fundable against receivables. → quickloan-calc.vercel.app/widget

About Bridge

Bridge is a direct lender and Walmart’s official financing partner for suppliers. We focus on PO financing, AR financing, and growth capital for CPG brands scaling into major retail.

We funded over $500M for CPG brands in 2025 & only have one goal:

Making sure the capital stack never becomes the reason you lose the win. You can book a call with me here.

Where Bridge will be in May

Sweets & Snacks – May 19-21

• If you plan to go to Vegas for Sweets and Snacks, I’ll be there! It would be great to meet up – happy to buy you a cup of coffee.

Bridge Pantry Update

When I was in New York a couple of weeks ago, we hosted a consumer brand investor / executive dinner. Mike Duda brought some Singing Pastures premium beef sticks. I was impressed and even though I’m in LA, working on getting the HQ team to become daily active consumers (for those who eat meat).