In the cannabis industry, finding a good cannabis financing option is no easy task. While many business owners in the cannabis industry have found workarounds, there is still a lot of confusion about remaining compliant. States continue to pass new laws regulating the use and cultivation of cannabis. Every new law passed creates new options for getting your business financing.
What is Cannabis Financing?
Cannabis finance is a loan primarily intended for Cannabis, CBD & Hemp related business purposes. Cannabis financing offers you the required capital to pay for equipment, inventory, overhead, hiring new employees, build-outs, real estate purchases, and more. Also, depending on the lender, these loans allow for flexible payments with daily, weekly, bi-weekly, and monthly payback options.
Cannabis Financing: How It Can Help You
The financial side of operating a cannabis business can be one of the most challenging tasks. The decision to take on debt or give away equity in your business to achieve your financing goals is a tough one. It might seem overwhelming to navigate the cannabis financing marketplace. Whether you’re a brick-and-mortar store or an e-commerce seller, we comprehend that cannabis businesses need support. That’s where Cannabis financing can help.
Open a New Location or Upgrade Your Equipment
If you are a cannabis operator looking to refurbish your dispensary or start a new location, then a cannabis loan can be used to finance your renovation project. In addition, if you need specialized equipment to operate, you can also go for cannabis equipment financing.
Capitalize On The Ever-Expanding Cannabis Industry
We know how crucial it can be to get the cannabis financing your business needs and when you need it. Often equipment is required to expand business prospects and capitalize on market opportunities.
How to Qualify for Cannabis Equipment Financing
No matter if you’re applying for a loan, a line of credit, or a lease, there are a few ways you can ensure you qualify for small business financing for your cannabis business. Begin by reviewing the lender’s criteria for approval. Many will need you to be in business for a specific amount of time and may want you to have a particular amount in annual revenues.
Most will require a specific credit score to qualify, so take this time to review both your personal and business credit scores. As discussed above, you may not qualify for traditional or SBA loans, given the strict industry needs, so look to lenders who are more flexible about the type of business you run.