Quick answer
Direct-to-consumer brands fund production runs, launches, ad spend and retail expansion through unsecured facilities sized on turnover, typically $5,000 to $500,000, or property-secured loans from $20,000 for larger or earlier-stage plans. Because DTC brands own their customers and margins, lenders focus on contribution after ads, repeat purchase and whether stock and marketing are funded in proportion.
Key points
- DTC brands own the margin and the customer — and carry the stock and the ad cost.
- Repeat purchase is the quiet engine of a healthy DTC brand.
- Fund launches in stages, with clear tests before the big spend.
- Moving into retail changes margins and payment timing; plan for both.
Direct-to-consumer brands are some of the most exciting businesses being built in Australia right now: skincare made in small labs, activewear designed in Bondi, hot sauces, pet treats, homewares and supplements, all sold straight to customers online. They keep the margin a retailer would take. In exchange, they carry the product, the stock and the cost of finding every customer themselves.
Why are DTC brands always hungry for cash?
A DTC brand pays for almost everything before it’s paid:
- Product development — samples, testing, packaging design and compliance.
- Production runs — often with minimum order quantities that are large for a young brand.
- Landed costs — freight, brokerage, duty and GST on import if manufactured overseas.
- Marketing — paid social, search, influencer seeding and content.
- Fulfilment — packaging, storage and shipping.
Revenue arrives after all of that, one order at a time. Even a very profitable brand can feel permanently short of cash while it’s growing, because each new month of growth needs more stock and more ads than the month before. That’s a timing problem, and timing problems are what working capital is for — as long as the unit economics underneath are sound.
Which numbers make a DTC brand fundable?
| Metric | Why it matters for DTC |
|---|---|
| Contribution per order after ads | Shows whether growth adds or burns cash |
| CAC and CAC payback | How long acquisition spend is tied up |
| Repeat purchase rate | Turns an expensive first order into a profitable customer |
| Gross margin after landed cost | Room to absorb discounts, returns and rising ad costs |
| Stock turn | How long production runs tie up cash |
| Channel mix | Reliance on one platform, retailer or influencer |
Repeat purchase deserves special attention. Many DTC brands only break even on a customer’s first order, then make their real margin on the second, third and fourth. If you can show that customers genuinely come back, and how often, you’re showing a lender the engine of the business. The ad-spend payback calculator uses orders per customer to show payback in months.
How should I fund a product launch?
Launches are where DTC brands take their biggest risks. Funding them in stages keeps the risk manageable:
- Stage 1: Pilot. A small production run, often at a higher unit cost, to test demand with your existing audience.
- Stage 2: Validate. Measure sell-through, reviews, return rate and CAC on cold audiences.
- Stage 3: Scale. Commit to the full production run and a larger marketing budget, funded against real data.
A lender is far more comfortable with a brand that can say “we sold 400 units of the pilot in three weeks at this CAC” than one asking to fund 10,000 units of an untested product. If you’ve got that data, start an enquiry — it takes about a minute and there’s no credit check.
What funding options suit DTC brands?
Lines of credit suit the repeating cycle of production, ads and payouts, and let you draw in step with results.
Short-term unsecured loans suit a defined production run or launch with a clear amount and timeline.
Property-secured business loans from $20,000 to $5,000,000 suit larger commitments: a big first production run, a retail expansion, or a brand whose trading history is still short but whose founders own property with equity.
Unsecured and line-of-credit amounts typically range from $5,000 to $500,000, sized on turnover and bank statements. Past credit issues and ATO debt are considered case by case.
Illustrative example: a hair-care brand’s second product
Illustrative only. A hair-care brand has sold one hero product for 18 months with strong reviews and customers averaging 2.4 orders a year. It wants to launch a second product that its existing customers keep asking for. The manufacturer’s minimum run costs $28,000 landed, and the founders plan $15,000 of launch marketing.
Rather than fund it all at once, they pre-sell to their email list, which covers about a third of the first run. With pre-order data showing demand, they fund the rest of the production run and a staged marketing budget. Because existing customers already buy often, the second product lifts orders per customer, which improves payback across the whole brand.
What changes if I start selling through retailers?
Retail can put your brand in front of thousands of new customers quickly, but it changes three things at once:
- Margin. Retailers buy at wholesale prices, so contribution per unit is lower.
- Cash timing. Retailers often pay on terms, weeks after delivery.
- Volume and deadlines. Orders are larger and must arrive on time.
That combination creates a new cash gap: you produce and ship stock, then wait to be paid. The first wholesale order page explains how founders fund that gap without derailing the direct side of the business.
What does a strong DTC funding request include?
- Monthly revenue and contribution after ads for the last six to twelve months.
- Repeat purchase rate and orders per customer.
- Landed cost per unit and supplier quotes for the next run.
- A staged plan showing what gets funded first and what triggers the next stage.
Build the brand without running dry
DTC brands grow on stock and marketing, both paid for well before customers pay you. If your numbers stack up and cash is the constraint, tell us about your brand. There’s no credit check to enquire, your details aren’t pushed out to a crowd of lenders, and a real person will call to understand how you sell. Please give accurate answers on the form — especially turnover, months trading and any property — so we can match you to the right option straight away. You may also like funding for ad spend.
Frequently asked questions
What is a DTC brand?
A direct-to-consumer brand designs its own products and sells them straight to customers, usually through its own online store and social channels, rather than relying mainly on retailers. It keeps more margin per sale but takes on product, stock and marketing risk.
How do lenders look at a DTC brand?
Much like any online business: business bank statements, turnover trend, margins and existing debts. Because DTC brands usually spend heavily on marketing, contribution after ad spend and evidence of repeat customers carry a lot of weight.
Can I fund a product launch?
Yes, where it's for business purposes and the business can meet repayments. It helps to show a staged plan: a pilot run, early sales data and a clear trigger for the bigger production order and marketing push.
Should a DTC brand go into retail stores?
It can grow reach quickly, but wholesale margins are lower and retailers often pay on terms. Model the cash gap and margin change before saying yes, and see our page on landing a first wholesale order.
What if my brand is growing fast but always short of cash?
That's common for DTC brands, because stock and ads are paid before sales arrive. It's usually a timing problem rather than a profit problem, which is exactly what working capital is designed for — provided the unit economics are sound.