The wellness boom: Funding opportunities for lenders and brokers
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The wellness industry is exploding right now.
Covering everything from vitamins and probiotics to functional drinks and weight management supplements, the nutraceutical category is one of the most rapidly expanding industries globally. With billions of dollars flowing into the space every year, there is a huge opportunity for lenders and brokers who understand how to position themselves.
But here’s the thing…
Traditional lenders will avoid this industry like the plague. High risk equals bad things to them. There is a huge opportunity for brokers/lenders who know what they’re doing.
Here’s what you’ll uncover:
- Why the wellness industry is booming
- The chargeback challenge nutraceutical brands face
- Funding opportunities lenders should be aware of
- How brokers can win big in this space
Why the wellness industry is booming
Let’s look at the numbers first.
The worldwide nutraceutical industry reached $636 billion in 2025 and is expected to grow almost 100% by 2033. That’s billions of dollars being invested in supplements and functional foods annually.
What’s driving the boom?
- Preventative healthcare: People want to stay healthy rather than treat illness later.
- Aging populations: Older consumers are spending more on supplements than ever.
- Personalised nutrition: AI and wearable tech are fuelling demand for custom products.
- Clean label products: Plant-based and natural ingredients are flying off shelves.
This isn’t a minor movement. It’s THE movement, and companies need funding to stay on top.
The chargeback challenge nutraceutical brands face
Here’s the catch with this industry…
Nutraceutical brands are considered high risk by most banks. Why you ask? Chargebacks. Forgot about that renewal? Didn’t feel that supplement worked? Forget the refund phone call. Straight to the bank instead.
Hence the importance of nutraceutical chargeback management. A brand can easily find themselves without a merchant account if they’re not prepared. Without a merchant account they can’t take cards. If they can’t take cards they can’t grow.
That’s where specialty providers step in. A trusted Nutraceutical merchant account payment processing partner helps brands with:
- Built-in chargeback protection
- Rolling reserves designed for the industry
- Fraud monitoring that catches issues early
- Stable processing even during big volume spikes
This is important information for lenders to know. Brands that process payments extremely securely pose less risk to lender funds.
Health and wellness merchants average a chargeback rate of 0.86%. Traditional payment processors can place accounts on hold or terminate them with little notice.
The brands that are built to last are the ones that approach chargebacks seriously from day one. They invest in proper tools, proper processing partners and proper policies. That stability is exactly what makes them fundable.
Funding opportunities lenders should be aware of
Nutraceuticals is full of lucrative funding options. These are the best ones available.
Merchant cash advances
Merchant cash advances work best for nutraceutical brands. Brands receive funds up front and repay through a portion of daily credit card transactions.
Why it works:
- No fixed monthly payments to worry about
- Payments scale with revenue
- Fast approval (often within 24-48 hours)
- Works around the high-risk classification
MCAs are attractive to lenders because repayment is tied to brand earnings. Brokers like MCAs because they allow deals to close quickly.
Inventory financing
Supplement companies are often burdened with large amounts of capital tied up in inventory. Orders for ingredients in bulk, manufacturing runs, and packaging all require payment before the product even arrives. Inventory financing allows brands to purchase more product without sacrificing cash flow. Using the inventory as collateral also mitigates risk for lenders.
Equipment financing
More and more wellness brands are growing into in-house production. They require everything from blending systems to encapsulation machinery. Equipment financing provides the funds to buy what they need without killing cash flow. The purchase is secured by the equipment itself, making it a very safe loan.
Lines of credit
Flexible lines of credit are ideal for nutraceutical brands with seasonal spikes in demand (cough, January supplement sales). Brands spend what they need, when they need it. Repay the money as cash flow permits.
How brokers can win big in this space
Brokers who specialise in the wellness industry have a massive edge.
Here’s why:
Brokers don’t comprehend the needs of the high risk industries. They pitch nutraceutical deals to conventional lenders, the lenders decline them, and deals perish.
Brokers who understand which lenders fund wellness brands, they close the deals others decline.
Build strong lender relationships
Seek out lenders that actively invest in nutraceutical companies. All sources of funding are different. Some will specialise in higher risk industries, others won’t entertain them at all.
Understand the industry
Brokers must understand how the wellness space operates. This includes subscription billing, regulations from the FDA and FTC, and yes… chargebacks. Global chargeback volume is projected to grow 42% to 337 million by 2026. Brokers can help clients understand best practices to maintain healthy accounts.
Position deals properly
Underwriters care about specific things when reviewing nutraceutical deals:
- Chargeback rates and dispute history
- Compliance with FDA and FTC regulations
- Average ticket size and customer retention
- How long the brand has been operating
Brokers who package deals with this info upfront get approvals faster.
Offer value beyond funding
The top brokers offer clients much more than just access to capital. They assist clients with merchant account setup, chargebacks and payment processing referrals. This allows the broker to become a trusted advisor instead of a shoe salesman.
Why the risk is worth it
Some lenders avoid this industry entirely because of the risk. But that’s a mistake.
High-risk merchants pay 4-8% processing fees versus 2-3% for standard accounts. So what does that mean to lenders and brokers? Larger spreads. Higher payouts. More opportunity to profit on each transaction.
Brands that partner with high-risk specialists know they need to pay higher prices for the services they require. Therefore they tend to be better clients that are more loyal long-term partners.
Final thoughts
The health and wellness boom shows no signs of slowing down. Billions of dollars are spent annually on nutraceuticals, representing a huge opportunity for lenders and brokers looking to expand.
To quickly recap:
- The nutraceutical market is growing fast and shows no signs of stopping
- Traditional lenders avoid the space, leaving huge gaps for specialists
- Chargeback management is critical to any funding decision
- MCAs, inventory financing, and lines of credit all work well
- Specialised brokers can win deals nobody else can touch
The companies require capital. Demand is present. Spreads are attractive. Now’s the time to participate.