Baked by Melissa taps JPalmer Collective for asset-backed credit line

What's the deal? Baked by MelissaDealroom has a profile for this one. Try Dealroom →, the New York dessert brand known for bite-sized cupcakes, has secured an asset-based line of credit from specialist lender JPalmer Collective. The facility funds working capital, growth initiatives, and the refinancing of existing debt. Founder Melissa Ben-Ishay built the company from a single batch of tie-dye cupcakes in her apartment kitchen into a business with nine retail locations and national e-commerce operations.

Why debt, not equity? Baked by Melissa chose JPalmer Collective for its flexible approach to lending and understanding of consumer brands, the company said. An asset-based line lets the team adjust borrowing as inventory needs shift without giving up ownership.

What they said: "The firm's flexibility and understanding of how consumer brands grow made them the right fit for us," said Ben-Ishay, president and co-founder. "This financing gives us the room we need to scale responsibly while continuing to invest in the products our consumers love."

JPalmer founder and chief executive officer Jennifer Palmer pointed to the brand's reach: "Melissa is a powerhouse with social smarts, able to leverage her more than 5 million followers across platforms to grow direct-to-consumer sales and national brand awareness."

The backdrop: The deal sits within a growing stream of asset-backed lending to consumer brands. JPalmer secured a $135 million syndicated credit facility in April 2026, led by Texas Capital and Dime Community BankDealroom has a profile for this one. Try Dealroom →, and has since announced facilities for brands including functional-snack maker LionessDealroom has a profile for this one. Try Dealroom →. That capacity lets it offer working capital without taking equity — a useful option for product businesses managing inventory and retailer-payment cycles.

The signal: As equity funding tightens, asset-based credit is becoming a default tool for established consumer brands that want to scale without diluting ownership. For a business built on inventory and gifting cycles, borrowing against assets fits the growth model — and it marks tailored credit reaching the food sector, not just capital-intensive manufacturers.

Read more: abladvisor.com

Image credit: Generated with Gemini