Smart Scaling: Why the "Accordion" is the Blueprint for Mid-Market CPG

In the current 2026 landscape, growth for CPG brands isn't a steady climb; it’s a series of high-stakes "step-functions." One day, you’re managing an avalanche of  DTC sales, the next, you’ve secured a thousand-store expansion with Target, or one of your SKUs becomes an Amazon "Best Seller" and the surge has cleared your warehouse overnight.

For brands in the "Mid-Market Gap" ($20M–$75M+ in net revenue), these leaps in scale often reveal a painful bottleneck. You’ve outgrown the rigid and expensive world of MCAs, yet you aren't quite ready for the big banks with their restrictive terms and covenants.

To bridge this gap, your working capital stack needs to do something most facilities can't: breathe, expanding and contracting with the real rhythms of your growth. This is the power of an accordion facility.

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What is an Accordion Facility?

Think of an accordion as a credit line with "pre-approved headroom." It is a structured feature in your asset-based lending (ABL) agreement that allows you to seamlessly increase your total line of credit without a complete re-underwrite or friction of a new loan agreement.

As the combined value of your inventory and accounts receivable expands, your capital availability should scale in lockstep. While many lenders promise to scale your line as revenue and assets grow, triggering an accordion often becomes a frustrating ordeal—multiple layers of approval, endless questions about why the additional capital is needed, and commitments that linger or never materialize.

It shouldn’t be that hard. A lender’s job, as a good partner, is to help fund a growing business when the fundamentals support it. At Assembled Brands, we don’t play games or make empty promises. When your business earns the need for more capital, we move quickly to deliver it—because flexibility only matters if it actually shows up when you need it.

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The ABL Edge: Fueling the Omnichannel Flywheel

For an omnichannel brand, cash is often caught in a "timing trap." You have to pay months in advance for production, and before a retailer pays your invoice. Here is how a sophisticated ABL structure solves this:

• Lending Against the "NOLV": Unlike banks that lend against book value, we lend against the Net Orderly Liquidation Value (NOLV). This allows for aggressive liquidity: up to 85% on Eligible A/R and up to 85% of NOLV.
• No "Lockbox" Requirements: We believe founders should stay in the driver's seat. Our facilities operate without lockboxes, and in most cases, springing dominion vs. full cash dominion,  giving you full control over your daily cash flow to reinvest where it matters most.
• Higher Concentration Limits: Banks often penalize brands for having "too much" success with one partner. We offer higher concentration limits (Amazon, Walmart, etc.), ensuring your funding isn't throttled just because one channel is winning.
• Subordination-Friendly: We are open to fully subordinated structures (DSCR-dependent), serving as a flexible working-capital layer that sits alongside existing venture debt.

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Strategic Equity Preservation

The most expensive mistake a growth-stage brand can make is using dilutive equity to fund "boring" assets like boxes, bottles, and shipping.

By utilizing an accordion-style ABL, you save your equity capital for what it was meant for: brand building, R&D, and winning consumer mindshare. You use the value of your physical assets to fund the machine that makes them.

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Is Your Brand Ready?

Assembled Brands specializes in providing these scalable lines to brands that have moved into disciplined growth:

• Proven Market Traction: Established brands with a consistent track record of revenue growth and a strong retail or digital presence.
• Path to Profitability: Companies demonstrating healthy unit economics and a clear trajectory toward (or achievement of) sustainable bottom-line performance.
• Institutional Support: Scaled brands backed by professional investors or maintaining a strong balance sheet and cash position.

The Bottom Line: In 2026, nimble beats optimal. An accordion facility ensures that your capital is never the reason you have to say "no" to a massive opportunity.

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Learn how an accordion-style facility has helped Bearaby scale efficiently here.