Should I take on debt (working capital loans, invoice financing) instead of raising equity to fund inventory?
The short answer
For a recurring, predictable need like inventory - not for burning on unproven ad spend - debt is almost always cheaper than equity, because you're not giving up ownership to fund something that turns back into cash within weeks. Indian D2C brands increasingly use invoice financing and revenue-based debt from lenders like Recur Club specifically to smooth inventory cycles ahead of festive spikes, without diluting the cap table. Model the interest cost against your CM2 per order before you sign anything - if debt service eats your contribution margin, it's the wrong instrument.
A quick summary to orient you. The real value is below: the resources worth your time, from people who've actually done it, not us.
Here are the resources
Hand-picked from around the web, each with a note on why it earns your time. India-specific ones carry a badge.
3 resources2 India-specific3 link-checked
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📄 Article
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Why we picked it
Marketplace and quick-commerce settlement cycles create a receivables gap that invoice financing exists specifically to bridge - this maps the Indian lender landscape for exactly that problem.
Why we picked it
A rare India-specific look at non-dilutive funding for D2C brands - working capital and revenue-based debt matched to inventory and marketing cycles instead of the default 'raise a round' instinct.
Why we picked it
A practical roundup for the pre-finance-hire stage - what lightweight software actually replaces a bookkeeper's spreadsheet before you're big enough to need one.
